© Reuters. Traders work on the floor at the NYSE in New York

By Shreyashi Sanyal

(Reuters) – U.S. stock index futures treaded water on Monday, after the main indexes ended the previous week slightly higher, as focus shifted to a pivotal Federal Reserve meeting that could lay the groundwork for an interest rate cut later this year.

The has risen nearly 5% so far in June on hopes of a rate cut in the face of weaker economic data and heightening global trade tensions, but that rally ran out of steam in the past week as traders trimmed their expectations.

The Fed is expected to leave borrowing costs unchanged at a policy meeting on Tuesday and Wednesday, but analysts expect data to show that a growing number of policymakers are open to cutting rates in the coming months.

“The Fed has a very delicate balancing act to contend with as they have a choice of endorsing current dovish market pricing and keeping things calm, or to suggest it’s gone too far too quickly and give risk assets a sharp jolt,” wrote Jim Reid, a strategist at Deutsche Bank (DE:).

The Fed’s policy-setting committee is due to release its statement at 2 p.m. EDT (1800 GMT) on Wednesday.

At 7:14 a.m. ET, were up 5 points, or 0.02%. were up 1.25 points, or 0.04% and were up 8 points, or 0.11%.

Investors also braced for the Group of 20 summit at the end of the month, which may yield progress on resolving the prolonged trade war between the United States and China.

Among stocks, Pfizer Inc (NYSE:) edged down 0.1% in premarket trading after the drugmaker said it would buy Array Biopharma Inc for $10.64 billion. Shares of Array jumped 59%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

2019-06-17