Investors expect the Federal Reserve to raise rates by 25 basis points on Wednesday, followed the next day by half-point hikes in the Bank of England and the European Central Bank, and any deviation from that script would be a real shock.
The results of the technological giants also They will test the mettle of Wall Street bulls looking to propel the Nasdaq to its best January since 2001.
The benchmark European STOXX index was down 0.65%, echoing a slight drop in the MSCI Asia-Pacific excluding Japan index, which is up 11% so far in January thanks to the reopening. from China.
Meanwhile, S&P 500 futures and Nasdaq futures were down nearly 1% as investors await guidance later in the week on Federal Reserve policy.
Interest rate futures forecast rates to peak at 5% in March, before falling back to 4.5% by the end of the year.
The dollar index was flat ahead of the meetings, on course for its fourth consecutive monthly loss of more than 1.5%, given the growing expectations that the Federal Reserve is nearing the end of its rate hike cycle.
Yields on 10-year bonds have fallen 33 basis points so far this month, to 3.5%, essentially due to loosening financial conditions, even as the Federal Reserve talks tough about tightening monetary policy.
Market expectations of an early Federal Reserve easing have weighed on the dollar, which has shed 1.6% so far this month at 101.790.
The fall in the dollar and in yields has favored gold, which is up 5.8% so far this month, to $1,930 an ounce.
Brent crude was down almost 1%, at $85.88 a barrel, while US oil was down 87 cents, at $78.8.
Source: Ambito
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