Wall Street Set to Open Higher, Brace for Fed Week

U.S. stocks were tipped to open a touch higher on Monday, with focus turning to this week’s closely-anticipated U.S. Federal Reserve meeting.

There were mixed cues from global markets, with European shares opening the day higher while Asian stock markets closed mostly lower following weak data from China at the weekend.

U.S. stock futures moved from negative to positive territory, with Dow Jones industrial average futures last trading about 20 points higher.

The U.S. central bank meets on Wednesday and Thursday amid continued debate over the timing of the first interest rate hike in almost a decade.

Futures markets are pricing in about a 24 percent chance of a rate hike this week following recent volatility in markets, heightened concerns about the outlook for China’s economy and low inflation expectations.

This week’s Fed meeting was expected to overshadow concerns about China for now. Data on Sunday showed investment and factory output in China fell short of analyst expectations in August, fuelling concerns about the outlook for the world’s second biggest economy.


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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.