- US futures gained strength Monday ahead of a busy week comprising the Fed meeting and
earnings . - The market largely expects a 75-basis point rate hike, but fears of
recession are growing.
US futures rose on Monday as investors brace for a busy week of interest rate decisions by the
Futures on the $4, $4and $4 rose 0.25%, 0.29% and 0.24%, respectively in early trading.
In Europe, the continent-wide $4 was up 0.2% in morning trading.
The Fed is expected to raise
"There won't be new economic projections in this meeting so all focus will be on how the Fed guides us in a world where no-one should really believe central bank forward guidance anymore as it's proved very unreliable over the last year," analysts at Deutsche Bank said.
With rate hike talks comes the worry of the US economy tumbling into a recession, which continues to weigh on investors' minds.
Meanwhile, corporate earnings results from the likes of Microsoft, Meta and Amazon are due this week alongside oil majors and key consumer-focused companies.
"If results are weaker than expected, then the market will remain vulnerable to a sharp pullback," Saxo Bank strategists said.
Social media company $4 became the latest company to warn in its results about the challenging economic backdrop. Shares in the Snapchat owner plunged 39% on Friday after a slump in ad revenue hit its second-quarter earnings.
On other fronts, the $4 fell 0.3% to around 106.32 after falling more than 1% last week, but was still within sight of its recent 20 year highs, thanks to investors seeking out the US currency as a safe-haven in case of an economic downturn.
In oil
In Asia, stocks dropped as concerns about a global economic slowdown reduced investor appetite for risk-assets. Hong Kong's $4 fell 0.22% while the $4 and $4 fell 0.77% and 0.60% respectively.