- At the beginning of a busy week filled with central bank meetings and economic data, global markets showed moderate movement. This week will test investor optimism that interest rates will soon decline.
- US futures contracts fell less than 0.2%. Europe’s STOXX 600 index edged lower.
- The dollar edged higher, while Treasury 10-year yields increased three basis points to 4.25%. In terms of currencies, the yen continued its losses to 1% following reports that Bank of Japan officials see little need to rush into scrapping the world's last negative interest rate, citing insufficient evidence of wage growth feeding inflation.
- Traders are looking ahead to US inflation readings on Tuesday, a Federal Reserve policy decision Wednesday and retail sales reports Thursday. Policy decisions at the ECB and BoE add to a congested agenda.
- In other news, the longest weekly losing run in five years was caused by worries that supply is surpassing demand, which caused oil to decline even further on Monday.
- Goldman Sachs now expects the Federal Reserve to deliver their first rate cut in Q3 2024 vs the previous forecast of Q4 2024.
