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Futures, Stocks Rise Ahead of Fed; Dollar Slips: Markets Wrap

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index gained 0.5% as of 8:22 a.m. New York time.
The Stoxx Europe 600 Index increased 0.4%.
Germany’s DAX Index climbed 0.1%.
The MSCI Asia Pacific Index advanced 0.6%.

Currencies

The Bloomberg Dollar Spot Index fell 0.3%.
The euro climbed 0.2% to $1.1872.
The Japanese yen strengthened 0.4% to 105.06 per dollar.
The British pound advanced 0.8% to $1.2987.

Bonds

The yield on 10-year Treasuries decreased one basis point to 0.67%.
Germany’s 10-year yield declined two basis points to -0.50%.
Britain’s 10-year yield dipped one basis point to 0.203%.

Commodities

West Texas Intermediate crude gained 2.2% to $39.14 a barrel.
Gold strengthened 0.7% to $1,968.32 an ounce.

Here are some key events coming up:

Wednesday sees the FOMC policy decision and news conference from Chair Jerome Powell.
Bank of Japan, Bank Indonesia and Bank of England policy decisions come Thursday.
Friday sees quadruple witching — the quarterly expiration of futures and options on indexes and stocks — in U.S. markets

U.S futures advanced with European stocks as investors waited for the outcome of the Federal Reserve’s policy meeting later Wednesday. Treasuries edged up and the dollar slipped.

Contracts on the three main American stock gauges pointed to modest gains at the open on Wall Street. FedEx Corp. surged in the pre-market after earnings topped analysts’ estimates on Tuesday. Retail and mining companies carried the Stoxx Europe 600 Index higher.

Crude oil climbed above $39 a barrel following a surprise drop in U.S. crude stockpiles. The Bloomberg Dollar Index extended its longest losing streak in a month with a fourth consecutive day of declines.

Oil futures are on the rise after a selloff over the last two weeks

Investors are looking for catalysts to power the next leg of a rally in global equities that sputtered in the first half of September. The Fed is expected to maintain its dovish stance after adopting a more relaxed approach on inflation last month. That’s shoring up sentiment in the face of risks ranging from U.S. presidential elections to the prospect of a no-deal Brexit.

“Central banks are far from out of ammunition,” Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note to clients. “Investors should be positioned for the upside in equities.”

Meantime, President Donald Trump said a vaccine shot for the coronavirus could be ready within four weeks. Separately, China’s top bio-safety scientist said one may be available for public use as early as November or December.

Trade tensions continue to simmer, with the World Trade Organization ruling that the U.S. violated international regulations by imposing tariffs on more than $234 billion of Chinese exports.