Sept 3 - World stocks steadied on Tuesday and the dollar rose to a two-week high as investors turned cautious awaiting a raft of economic data that may determine how deeply the U.S. will cut interest rates.
"We think market reaction to any surprise will likely be contained today given the event risk ahead of us," said Evelyne Gomez-Liechti, rates strategist at Mizuho in London. Traders now price in around 100 basis points of Fed cuts across three meetings, meaning they foresee a big 50 bps cut at one of them .Stock markets have recovered from their early August rout, while bond markets continue to hold onto gains, painting a puzzling picture.
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