Market Spotlight On FOMC Outcome

Mixed sentiment prevails in world markets as asset classes positioned for the Fed’s potentially first rate cut since March 2020. The keenly anticipated decision of the Federal Open Markets Committee is scheduled to be announced at 2 PM ET.

The CME Group’s closely monitored FedWatch Tool that tracks the expectations of interest rate traders now shows a 63-percent likelihood of a half-point cut and a 37-percent probability of a quarter-point easing by the Federal Reserve.

Wall Street Futures are trading in mildly positive territory. European benchmarks are trading on a negative note. Asian stock indexes however finished trading on a positive note.

Dollar Index has edged down. Bond yields hardened amidst anxiety about the Fed review outcome. An unexpected jump in inventories in the U.S. dragged down global crude oil prices. Gold recorded overnight gains as markets positioned for a significant Fed rate cut. Cryptocurrencies are trading mostly positive.

Here is a snapshot of the major world markets at this hour.

Stock Indexes:

DJIA (US30) at 41,655.80, up 0.12%
S&P 500 (US500) at 5,642.60, up 0.14%
Germany’s DAX at 18,733.15, up 0.01%
U.K.’s FTSE 100 at 8,254.62, down 0.66%
France’s CAC 40 at 7,453.21, down 0.46%
Euro Stoxx 50 at 4,842.35, down 0.38%
Japan’s Nikkei 225 at 36,338.50, up 0.37%
Australia’s S&P ASX 200 at 8,142.10, up 0.01%
China’s Shanghai Composite at 2,717.28, up 0.49%
Hong Kong’s Hang Seng at 17,660.02, up 1.37% (Sep 17)

Currencies:

EUR/USD at 1.1126, up 0.12%
GBP/USD at 1.3212, up 0.40%
USD/JPY at 141.71, down 0.48%
AUD/USD at 0.6789, up 0.50%
USD/CAD at 1.3586, down 0.08%
Dollar Index at 100.78, down 0.11%

Ten-Year Govt Bond Yields:

U.S. at 3.673%, up 0.81%
Germany at 2.1710%, up 1.07%
France at 2.899%, up 1.40%
U.K. at 3.8525%, up 2.24%
Japan at 0.833%, up 0.85%

Commodities:

Brent Oil Futures (Nov) at $72.84, down 1.17%.
Crude Oil WTI Futures (Nov) at $69.14, down 1.17%.
Gold Futures (Dec) at $2,603.60, up 0.43%.

Cryptocurrencies:

Bitcoin at $59,961.19, up 1.51%
Ethereum at $2,321.82, up 0.52%
BNB at $542.56, up 0.16%
Solana at $130.77, down 1.38%
XRP at $0.5766, down 1.60%.