PARIS (Reuters) – The New York Stock Exchange opened hesitantly on Monday as investors braced for a busy week of policy meetings, including the Federal Reserve’s meeting on Wednesday.
In early trading, the Dow Jones index gained 165.82 points, or 0.40%, to 41,559.60 points, and the broader Standard & Poor’s 500 fell 0.08% to 5,621.25 points.
The Nasdaq Composite fell 0.62%, or 110.27 points, to 17,573.702.
Several monetary policy meetings are urging operators to be cautious.
In the United States, uncertainty remains over the extent of the next Fed rate cut, expected on Wednesday: while economists are betting on an initial cut of 25 basis points, money markets estimate a cut of 50 basis points as 60% likely.
A less significant easing than expected by markets would put pressure on risky assets and bonds, but a larger cut could revive fears of an economic slowdown in the United States.
The Bank of Japan’s (BoJ) upcoming policy meeting, which concludes on Friday, could also trigger a reaction in global assets, particularly if the institution adopts a restrictive tone.
The BoJ’s rate hike in early August forced investors to unwind positions financed by a weak yen. Observers now fear that a rebound in Japanese asset yields could prompt Japanese investors to favor domestic assets, to the detriment of the rest of global assets.
In stocks, Intel gained 0.9% as the company could get $3.5 billion in federal grants to make semiconductors for the U.S. Department of Defense, according to Bloomberg News.
(Written by Corentin Chappron, edited by Sophie Louet)
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