S&P futures drift as focus turns to central banks

Bloomberg

US equity futures drifted on Monday while European stocks edged lower following a mixed session in Asia as a big week for central-bank policy gets underway. Treasuries fell and the dollar was steady.
Contracts on the S&P 500, Dow Jones Industrial Average and Nasdaq 100 gauges struggled for traction, while the Stoxx Europe 600 Index slipped. Deutsche Bank boosted lenders on reports that it’s considering creating a “non-core unit” to wind down legacy assets as part of a broader overhaul. Japanese and Australian shares declined, while equities in Hong Kong rose after the government suspended a controversial extradition bill. Treasury yields climbed along with those on most European bonds as investors looked ahead to a week in which the Federal Reserve, the Bank of Japan and the Bank of England all set monetary policy.
Investors will be scrutinising the Fed’s decision and messaging on Wednesday for signals on the chances of rates cuts ahead. Meanwhile, US Commerce Secretary Wilbur Ross reiterated that the prospect of a major trade deal is unlikely to emerge from a possible meeting between President Donald Trump and Chinese President Xi Jinping at the Group of 20 summit in Osaka this month.
The Fed’s “overall tone will be dovish but there’s a fair bit priced into the market already,” Sally Auld, senior interest-rate strategist at JPMorgan Chase & Co., told Bloomberg TV in Sydney.
Bitcoin jumped as much as 10%, heading towards its highest close in more than a year.
Federal Reserve, the Bank of Japan and the Bank of England all set monetary policy, along with central banks in Norway, Brazil, Taiwan and Indonesia.
While futures on the S&P 500 Index climbed 0.1% as of 7:18 a.m. New York time, the Stoxx Europe 600 Index dipped 0.1%, the lowest in a week. The Shanghai Composite Index gained 0.2% and the MSCI Emerging Market Index fell 0.4%, the lowest in more than a week.
The Bloomberg Dollar Spot Index climbed less than 0.05%, highest in more than two weeks. The euro rose 0.1% to $1.1216 and the British pound declined less than 0.05% to $1.2585, the weakest in six months.

While, the Japanese yen sank 0.1% to 108.69 per dollar, the weakest in more than two weeks, the onshore yuan increased less than 0.05% to 6.925 per dollar.
The yield on 10-year Treasuries gained three basis points to 2.11%, the first advance in a week and the yield on two-year Treasuries gained four basis points to 1.88%, the largest advance in a week.
As Germany’s 10-year yield increased one basis point to -0.24%, the first advance in a week, Japan’s 10-year yield climbed one basis point to -0.123%.
West Texas Intermediate crude dipped 1.1% to $51.91 a barrel and iron ore sank 2.3% to $102.65 per metric ton, the largest tumble in two months. Gold fell 0.6% to $1,334.28 an ounce, the biggest fall in a week. Soybeans gained 1.7% to $9.40 a bushel, hitting the highest in 12 weeks with its sixth straight advance.