The Federal Reserve interest rate decision is imminent; Nasdaq futures fell before the U.S. market opened, Nvidia dropped more than 2% pre-market, and gold edged down.

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At the start of a key central bank decision week, global stock markets are trading within a narrow range as investors broadly expect the Federal Reserve to soon begin a series of interest rate cuts.

In U.S. pre-market trading, cryptocurrency exchange Gemini extended gains from the previous session, now up 3.8%; Tesla is up more than 2% pre-market. Nasdaq 100 index futures have widened their decline to 0.1%, hitting an intraday low. Nvidia is down more than 2% pre-market.

European stocks are rising, with French stocks hitting an intraday high. U.S. Treasury yields edged higher, the dollar is little changed, and gold prices dipped slightly.

In U.S. pre-market trading, cryptocurrency exchange Gemini extended gains from the previous session, now up 3.8%; Tesla is up more than 2% pre-market. Nasdaq 100 index futures have widened their decline to 0.1%, hitting an intraday low. Nvidia is down more than 2% pre-market.Major European stock markets opened slightly higher, with Germany’s DAX30 up 0.37% at open. The UK’s FTSE 100 index opened up 0.13%. The Euro Stoxx 50 index opened up 0.42%. The French CAC 40 index extended its rise to 1.1%, hitting an intraday high.Korea’s KOSPI index closed up 0.3%.The U.S. dollar spot index is little changed.The pound sterling is up 0.3% against the dollar at 1.3596, the highest level since July 10.The U.S. 10-year Treasury yield rose by 1 basis point to 4.07%, with longer maturities leading declines.Brent crude rose 0.4% to $67.29 per barrel.Spot gold fell 0.03% to $3,642 per ounce.

Main stock indices rise, bond market under pressure

On Monday, market risk appetite clearly rebounded. U.S. stock index futures indicate Wall Street will extend gains, while European stocks are also mostly higher. In Asia, the MSCI Asia Pacific Index at one point broke above the record high set in February 2021, before paring gains.

By contrast, the bond market is under pressure. The U.S. 10-year Treasury yield rose by 1 basis point to 4.07%, with longer maturities leading declines. In Europe, French bonds underperformed after Fitch downgraded the country’s credit rating following political turmoil.

Currently, investors are focused on the Federal Reserve’s policy meeting this Wednesday. Markets have almost fully priced in rate cuts at each of the next three Fed meetings.

However, concerns remain. Michael Brown, a research strategist at Pepperstone Group Ltd., said, “If the Fed delivers a hawkish message, risk assets may experience turbulence this week.” But he also believes:

“The path of least resistance is still higher, because economic and earnings growth are solid, trade tensions are subdued, and a dovish monetary policy stance continues to support the market.”

Spot gold fell 0.03% to $3,642 per ounce.

Global Central Bank Super Week

The Fed is not the only focus this week. There will be an intensive run of global central bank policy announcements, affecting half of the world’s ten most-traded currencies.

The Bank of Canada will announce its rate decision on Wednesday, the Bank of England on Thursday, and the Bank of Japan will close out the week. The moves by these central banks, together with the Fed’s stance, will provide key guidance for global investors regarding the direction of macro policy in the coming months.

Risk Warning and DisclaimerThe market carries risks, and investment should be approached with caution. This article does not constitute personal investment advice and does not take into account any individual’s special investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions found herein are appropriate for their own circumstances. Investing accordingly is at your own risk. ```