- Prior to an important inflation report, US stock futures posted minor movements while Treasury yields and the dollar declined.
- Ahead of this week's barrage of economic data and interest-rate announcements, equity traders refrained from placing large wagers, with contracts on the S&P 500 and Nasdaq 100 maintaining small ranges.
- The US central bank is widely expected to hold rates, with most market focus on whether it will try to temper policy easing expectations after investors’ aggressive dovish repricing. Tuesday’s consumer price index will give Wall Street an idea of whether the disinflation trend is continuing.
- A gauge of dollar strength slipped 0.3%. Treasuries rose across the curve, with 10-year yields falling four basis points to 4.19%.
- European stocks were steady, while France’s CAC 40 index traded within sight of a record close, reflecting broad optimism that central bank policy easing is near.
- The Bank of England sets interest rates on Thursday, and policy announcements from the European Central Bank, the Swiss National Bank, and Norway are also scheduled for that day. In the UK, government bonds surged and the pound underperformed following data showing wage growth slowed at the sharpest pace in almost two years, a further indication that the labour market is cooling in response to a flagging economy.
- ZEW: Share of respondents anticipating rate cuts by the ECB in the medium term has doubled.
