Stocks in Europe are setting new records, with U.S. futures in the Dow, S&P, NASDAQ and Russell 2000 flirting with all of the trade highs on Monday, as speculation rose that, in spite of the economic upsurge and high inflation, the Federal Reserve continues its dovish policy.
Treasury rates increased somewhat on Monday morning, with investors preparing for the two-day policy meeting of the Federal Reserve this week. On Tuesday and Wednesday, the Federal Open Market Committee is scheduled to debate the policy. President of the Fed, Jerome Powell, will deliver a press conference at 14.00. ET on Wednesday.
The Fed should reaffirm its commitment to ease monetary policy. However, investors will watch whether inflation concerns have effects on their projections, especially when the hotter than anticipated consumer price index for May was announced last week.
With the European Central Bank being consistent in its ultra-loose monetary policy, the STOXX 600 Index expanded its four straight-week surge in Europe.
Although US contracts traded green, traders are closely monitoring the two-day policy meeting of the US Federal Reserve and will look through the wording to discover any signs of the Fed’s tamping of its Quantitative Easing program.
Asia, including China, Hong Kong and Australia, was mixed in light holiday business. Nikkei 225 in Japan has seen moderate advances.