Wall Street Set to Open Higher, Brace for Fed Week

U.S. stocks were tipped to open a touch higher on Monday, with focus turning to this week’s closely-anticipated U.S. Federal Reserve meeting.

There were mixed cues from global markets, with European shares opening the day higher while Asian stock markets closed mostly lower following weak data from China at the weekend.

U.S. stock futures moved from negative to positive territory, with Dow Jones industrial average futures last trading about 20 points higher.

The U.S. central bank meets on Wednesday and Thursday amid continued debate over the timing of the first interest rate hike in almost a decade.

Futures markets are pricing in about a 24 percent chance of a rate hike this week following recent volatility in markets, heightened concerns about the outlook for China’s economy and low inflation expectations.

This week’s Fed meeting was expected to overshadow concerns about China for now. Data on Sunday showed investment and factory output in China fell short of analyst expectations in August, fuelling concerns about the outlook for the world’s second biggest economy.

CNBC

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