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.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam