Global Stocks Trade in Narrow Range Ahead of Key Fed Meeting
By Dow Jones Newswires StaffInternational stock markets were trading in narrow ranges and U.S. stock futures inched slightly higher ahead of the start of the Federal Reserve's two-day meeting. The Fed is all-but-certain to cut by 25 basis points Wednesday, so the focus will be on Fed Chair Jerome Powell's commentary and hints about the rate path for 2026. "Markets expect a 'hawkish cut'--a rate cut paired with guidance that the Fed may hold off on further easing to be sure inflation isn't heating back up," analysts at Peak Trading Research said. The U.S. dollar was steady early in Europe, while U.S. Treasury yields were little changed after Monday's gains.The JOLTS report for October lands later, while company earnings reports include GameStop, Campbell's and Cracker Barrel.U.S. futures for the S&P 500 and Nasdaq were up 0.2% while those for the Dow Jones Industrial Average climbed 0.1% following a slightly lower close on Wall Street in Monday's session. Changes in futures do not necessarily predict movements after the opening bell.Across global equity markets, in Europe, the pan-regional Stoxx Europe 600 gained 0.2% shortly after the open; France's CAC 40 increased 0.1% and Germany's DAX rose 0.4%. The U.K.'s FTSE 100 lost 0.1%. In Asia, Japan's Nikkei 225 index rose 0.1% while in Hong Kong the Hang Seng Index dropped 1.3% to 25434.23.The U.S. dollar was steady against a basket of major currencies; the DXY dollar index was recently at 99.101, having hit a five-day high of 99.227 on Monday. Bitcoin eased back slightly.U.S. Treasury yields were mixed. "The closer we get to Wednesday's FOMC rate decision--and more importantly the Fed narrative and outlook into 2026--the more fragile market sentiment appears to become," First Abu Dhabi Bank's chief economist Simon Ballard said in a note. The market prices a 25-basis-point rate cut with a 87% probability, according to LSEG data. The two-year Treasury yield was last up 0.5 basis point at 3.586%, while the 10-year Treasury yield was flat at 4.169%, according to Tradeweb.In commodities, oil prices slipped, extending the previous session's losses as traders focus on talks to end the war in Ukraine, a looming global supply surplus and U.S. interest rates. Brent crude was last down 0.1% to $62.41 a barrel, while WTI fell 0.2% to $58.77 a barrel after settling 2% lower on Monday. Gold prices were broadly steady, with futures in New York flat at $4,218.50 a troy ounce.Write to Barcelona Editors at [email protected]