Global Markets Rebound as FOMC Decision Looms

Shrugging off yesterday’s US index losses of 0.3%-0.6%, US index futures are up 0.2%-0.4% this morning. Over in Europe, the FTSE is up 0.1% and the Dax is up 0.2%. Chinese markets are also bouncing back with Hong Kong rising 0.8% and Shanghai gaining 0.6%.

Commodities are also picking up today with US Crude Oil climbing 1.0%, Natural Gas gaining 2.4% and Copper bouncing 0.2%. Precious metals are steady today, while Bitcoin is down 1.5%.

Treasury yields in the US (10-year above 4.4%) and the UK (10-year above 4.5%) are on the rise heading toward this week’s central bank decisions. The Fed kicks off this afternoon with the interest rate decision and member forecasts at 2:00 pm EST, followed by Chair Powell’s press conference at 2:30 pm. The US central bank is widely expected to announce another 0.25% interest rate cut.

The bigger question is if Powell will signal a pause or stay the course on rate cuts. The member ‘s dot plot of Fed Funds forecasts for the next two years may give a better idea of the path forward form here. Tomorrow, the Bank of Japan and the Bank of England are holding their last meetings of the year with no changes to interest rates expected.

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