Global shares are on track for their first monthly loss in six months as investors brace for a week filled with economic data, earnings reports, and the U.S. Federal Reserve’s policy meeting. The MSCI All-World index is currently up 0.1% for the day, driven by gains in Europe following a rally on Wall Street. However, the index is set to close April with a 2.2% loss, marking its worst monthly performance since October.
In Europe, investors are digesting earnings reports from major companies like HSBC, Santander, Adidas, and Lufthansa. All eyes are now on Apple as it prepares to report its first-quarter earnings after the closing bell.
The Japanese yen is also in focus after a suspected intervention lifted it from a 34-year low on Monday. The currency is back under pressure, with the dollar up 0.35% at 156.87 per dollar. Japan’s top currency diplomat has stated that authorities are prepared to address foreign exchange matters around the clock.
Investors are closely watching the outcome of the Fed’s policy meeting this week, as expectations for U.S. rate cuts have been fluctuating in response to inflation reports. Traders are now pricing in a 57% chance of a rate cut in September, down from the 150 bps of cuts priced in at the start of the year.
Overall, the shifting expectations on U.S. rates have boosted Treasury yields and the dollar, with the dollar up 0.2% against a basket of currencies. Futures on the S&P 500 and Nasdaq are indicating a slight weakness at the open, following gains in U.S. stocks led by Tesla shares. Oil prices remain steady, while spot gold is down 0.9% at $2,314 an ounce.