👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Dow futures edge higher; Fed meeting to dominate activity

Published 18/09/2023, 11:44
© Reuters
EUR/USD
-
US500
-
DJI
-
GM
-
F
-
GC
-
LCO
-
ESZ24
-
CL
-
1YMZ24
-
NQZ24
-
IXIC
-

Investing.com -- U.S. stock futures traded marginally higher Monday, starting a fresh week on a cautious note as investors look forward to a highly-anticipated Federal Reserve policy meeting.

By 06:35 ET (10:35 GMT), the Dow Futures contract was up 35 points, or 0.2%, S&P 500 Futures traded 5 points, or 0.1%, higher and Nasdaq 100 Futures climbed 25 points, or 0.2%.

The Dow Jones Industrial Average managed to eke out a small increase last week, while the broad-based S&P 500 and tech-heavy Nasdaq Composite slipped for the second consecutive week.

Fed meeting looms large

The latest policy-setting meeting by the U.S. Federal Reserve is likely to dominate activity this week, with the two-day get together scheduled to conclude on Wednesday.

The U.S. central bank is widely expected to keep interest rates steady at a range of 5.25% to 5.50%, and thus investors will be looking more for clues from policymakers about their plans for borrowing costs during the rest of the year. 

Data released last week saw consumer prices record the biggest jump in 14 months in August, but this was largely down to higher petrol costs, as the underlying figure decelerated to its slowest rate in almost two years.

“As with the June hold decision, the Fed is set to suggest that the decision should be interpreted as part of its process of a slowing in the pace of rate hikes rather than an actual pause,” said analysts at ING, in a note. “While inflation is moderating, it is still too high and with the jobs market remaining very tight and activity holding firm, the Fed can’t take any chances.”

The data slate is largely empty Monday, with only the NAHB housing index due for release, while investors will also be looking for progress in talks to avoid the fourth partial U.S. government shutdown in a decade.

Negotiators to resume auto strike talks

Negotiators representing the auto giants – General Motors (NYSE:GM), Ford (NYSE:F) and Stellantis (NYSE:STLA) – are set to resume talks with the United Auto Workers union later Monday, seeking to end one of the most crippling strikes in decades.

The strikes have halted production at three plants in Michigan, Ohio and Missouri that produce the Ford Bronco, Jeep Wrangler and Chevrolet Colorado, along with other popular models.

Crude continues to rally on supply tightness

Oil prices headed higher Monday, continuing to rally on the back of expectations of a tighter market ahead of a series of central bank policy-setting meetings this week.

The crude benchmarks have risen over 30% over the past three months following supply cuts from Saudi Arabia and Russia, which could push the market into a substantial deficit in the fourth quarter.

Traders will be watching decisions and commentary by central banks, including the U.S. Federal Reserve, this week on interest rate policies, and key economic data out of China.

By 06:35 ET, the U.S. crude futures traded 0.6% higher at $90.58 a barrel, while the Brent contract climbed 0.6% to $94.47. 

Additionally, gold futures rose 0.1% to $1,948.15/oz, while EUR/USD traded 0.2% higher at 1.0671.

(Oliver Gray contributed to this item.)

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.