The week kicks off on a mixed note. Last week's Federal Reserve (Fed) rate cut gave markets a boost, but news that the Bank of Japan (BoJ) will begin reducing its ETF holdings unsettled global risk sentiment on Friday.
Plenty of Fed speakers this week will clarify the FOMC’s policy views after Chair Powell’s cautious remarks last week. With the Dot Plot signalling two more cuts this year, we don’t expect much support for the dollar, which is looking moderately expensive in the short-term. PMIs across developed countries and the US PCE are the other highlights this week
The Dow and the S&P 500 ended nearly unchanged, recovering from earlier lows following President Donald Trump’s comments on tariff reprieve. The benchmark 10-year Treasury yield rose but traded in a tight range on tariff and economic concerns. The dollar gained putting pressure on gold prices. Oil edged up as fresh Iran sanctions and latest output plan from the OPEC+ raised supply concerns.
