US Stocks Dip on Fed Outlook Uncertainty

GGSECI increased to an all-time high of 8631.00 Index Points.

Over the past 4 weeks, Ghana Stock Exchange Composite Index gained 5.5%, and in the last 12 months, it increased 83.16%.

The S&P/TSX Composite Index traded between small losses and gains at the 31,310 level on Monday as energy weakness broadly offset tech gains ahead of policy decisions by the Bank of Canada and the Federal Reserve.

Energy led the downdraft with Enbridge down over 1% and Imperial Oil and Cenovus off about 1% as oil prices slipped more than 1% while major miners also traded lower.

Technology names Shopify, Constellation Software and Celestica helped limit losses after rising roughly 1%, 1.5% and 2.5% respectively.

Elsewhere, stronger than expected Canadian employment bolstered market bets that the Bank of Canada will hold rates on Wednesday with markets pricing a more than 90% probability of a hold and the next hike pushed into 2026.

In the US the Federal Reserve is widely expected to cut in December yet uncertainty about the 2026 policy path kept sentiment cautious.

US equities inched higher on Monday, supported by expectations that the Federal Reserve will deliver a rate cut on Wednesday.

The S&P 500 gained 0.1% to 6,870, its highest level since late October, while the Nasdaq added about 0.5% and the Dow Jones lost 60 points from a one-month high.

Caution, however, lingered ahead of updated FOMC economic projections and ongoing uncertainty around the 2026 policy path, with sticky inflation reinforcing expectations that policymakers may proceed carefully.

Tech valuations will be in focus this week, with Broadcom and Oracle set to report earnings.

Among individual movers, Confluent surged 29% following reports that IBM is in advanced talks to acquire the company for about $11 billion.

Tesla slipped 1.5% after Morgan Stanley downgraded the stock to equal weight from overweight.

Carvana jumped more than 7% after S&P Dow Jones Indices announced the online used-car retailer will join the S&P 500.

CANBERA (dpa-AFX) - Amidst overwhelming expectations of a rate cut by the Fed on Wednesday, focus of world markets has turned on Fed Chair's potential forward guidance. With inflation subdued, job markets cooling and divisions in the Fed, markets are bracing for the uncertainty surrounding the monetary policy outlook.

The CME FedWatch tool that tracks the expectations of interest rate traders currently shows the likelihood of a quarter percentage rate cut by the Fed on December 10 at 87.4 percent versus 86.2 percent a day ago.

Wall Street Futures have edged up. Benchmarks in Europe are trading on a mixed note. Asian markets too were directionless in the day's trading.

The six-currency Dollar Index is trading close to the flatline. Ten-year bond yields mostly hardened in anticipation of a hawkish forward guidance by the Federal Reserve. Ten-year Japanese bond yields touched a fresh 52-week high again on Monday.

Crude oil prices declined head of the Fed decision. Gold prices too retreated amidst warnings by BIS, dubbed the central bank to the world's central banks.

Cryptocurrencies nevertheless rallied.

Here is a snapshot of the major world markets at this hour.

Stock Indexes:

DJIA (US30) at 47,962.60, up 0.02%

S&P 500 (US500) at 6,878.30, up 0.11%

Germany's DAX at 24,092.54, up 0.22%

U.K.'s FTSE 100 at 9,653.45, down 0.14%

France's CAC 40 at 8,100.65, down 0.17%

Euro Stoxx 50 at 5,725.65, up 0.03%

Japan's Nikkei 225 at 50,581.94, up 0.18%

Australia's S&P ASX 200 at 8,624.40, down 0.12%

China's Shanghai Composite at 3,924.08, up 0.54%

Hong Kong's Hang Seng at 25,765.36, down 1.23%

Currencies:

EUR/USD at 1.1648, up 0.04%

GBP/USD at 1.3321, down 0.08%

USD/JPY at 155.57, up 0.14%

AUD/USD at 0.6639, down 0.02%

USD/CAD at 1.3807, down 0.07%

Dollar Index at 98.97, down 0.02%

Ten-Year Govt Bond Yields:

U.S. at 4.149%, up 0.22%

Germany at 2.8369%, up 1.32%

France at 3.556%, up 0.65%

U.K. at 4.4920%, up 0.31%

Japan at 1.974%, up 1.28%

Commodities:

Brent Oil Futures (Feb) at $63.02, down 1.15%.

Crude Oil WTI Futures (Jan) at $59.37, down 1.18%.

Gold Futures (Feb) at $4,233.75, down 0.22%.

Cryptocurrencies:

Bitcoin at $91,667.88, up 3.05%

Ethereum at $3,145.11, up 3.67%

XRP at $2.09, up 2.66%

BNB at $909.93, up 2.25%

Solana at $138.19, up 4.44%

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The Ibovespa rose nearly 1% to hover near 159,000 on Monday, rebounding from Friday’s sharp drop as investors digested signals that Senator Flávio Bolsonaro may withdraw from the presidential race, easing political uncertainty.

Sentiment was further supported by expectations of a 25 bp Federal Reserve rate cut on Wednesday, which helped bolster risk appetite.

Markets had sold off after Jair Bolsonaro endorsed his son as the candidate for 2026, but Flávio said on Sunday he may step aside, hinting that any withdrawal would come at a “price,” potentially tied to the family’s push for an amnesty for those involved in the January 8, 2023 events.

Vale rose 0.7% on firmer iron ore prices, while Petrobras gained 0.8% amid reports it may take over Braskem’s operations, lifting Braskem by 1.5%.

Major banks also advanced, with Bradesco up 1.1% and Itaú up 0.9% after reaching a deal to acquire stakes held by GPA (+1.3%), Casas Bahia (flat), and Assaí (+0.9%) in Itaú CBD.

The Ibovespa rose nearly 1% to hover near 159,000 on Monday, rebounding from Friday’s sharp drop as investors digested signals that Senator Flávio Bolsonaro may withdraw from the presidential race, easing political uncertainty.

Sentiment was further supported by expectations of a 25 bp Federal Reserve rate cut on Wednesday, which helped bolster risk appetite.

Markets had sold off after Jair Bolsonaro endorsed his son as the candidate for 2026, but Flávio said on Sunday he may step aside, hinting that any withdrawal would come at a “price,” potentially tied to the family’s push for an amnesty for those involved in the January 8, 2023 events.

Vale rose 0.7% on firmer iron ore prices, while Petrobras gained 0.8% amid reports it may take over Braskem’s operations, lifting Braskem by 1.5%.

Major banks also advanced, with Bradesco up 1.1% and Itaú up 0.9% after reaching a deal to acquire stakes held by GPA (+1.3%), Casas Bahia (flat), and Assaí (+0.9%) in Itaú CBD.