FILE PHOTO: Cars travel past a display showing Shanghai and Shenzhen stock indexes near the Shanghai Tower and other skyscrapers at the Lujiazui financial district in Shanghai, China February 5, 2024. REUTERS/Xihao Jiang/File Photo
XTB research director Kathleen Brooks said markets would look past the size of any rate cut on Wednesday to understand the Fed's rationale. Investors also digested news from Sunday of a second assassination attempt on Republican presidential candidate Donald Trump. Shares in his Trump Media & Technology company were volatile on Monday after ending the previous week sharply higher.
MSCI's All-World index rose 0.14 per cent, to 828.05. Hopes for a big cut by the Fed have boosted stocks, taking the index 10 per cent higher in the past six weeks.Central banks in Japan and the UK also meet this week, with both expected to stand pat for now, while a packed data schedule includes U.S. retail sales and industrial production.
The Bank of England is expected to leave rates on hold at 5.00 per cent when it meets on Thursday, though markets have priced in a 31 per cent chance of another cut.