US equity futures fluctuate, bonds steady on FOMC day

Bloomberg

US equity futures fluctuated as investors turned cautious before a policy decision from the Federal Reserve. Oil extended a powerful rally and Treasuries were steady.
Contracts on the S&P 500 index drifted between modest losses and gains after the underlying gauge snapped a three-day winning streak amid weakness in technology and real estate. Chemical producers led a small advance in European stocks. The 10-year Treasury yield hovered around 1.5%. The dollar edged lower versus major peers.
Investors are marking time before the Fed’s policy decision, as concerns mount that officials could pencil in a timetable for tapering stimulus injections that have driven a market boom. The latest statement is set to include updated projections for interest rates and economic forecasts.
With inflation and economic growth accelerating this year, Fed Chair Jerome Powell and his colleagues may consider moving up a discussion on scaling back monetary stimulus and laying the groundwork for the first post-pandemic interest rate hike as soon as 2023.
“The outlook looks pretty positive but a lot of investors are asking for there to be better clarity on when we are going to have some start to the taper,” Julie Biel, portfolio manager and senior research analyst at Kayne Anderson Rudnick, said on Bloomberg Television. “There’s a lot of nerves that we are going to wait too long, the economy is going to overheat and then we’re going to have to taper all at once.”
Elsewhere, global benchmark Brent was closing in on $75 a barrel after industry data pointed to a substantial draw in US crude stockpiles. West Texas Intermediate climbed to the highest level since October 2018.
China ordered state firms to curb overseas commodities exposure to rein in soaring raw materials prices. Copper reversed gains on the moves.
Bitcoin topped $40,000 after closing at its highest level since May. The British pound gained on the dollar as inflation surged unexpectedly past the Bank of England’s target for the first time in almost two years.
Futures on the S&P 500 Index were little changed at 9:58 am London time and the Stoxx Europe 600 Index increased 0.1%.
While the MSCI Asia Pacific Index declined 0.3%, the MSCI Emerging Market Index decreased 0.5%.
The Bloomberg Dollar Spot Index dipped 0.1% and the euro was little changed at $1.2129.
While the British pound jumped 0.2% to $1.4106, the onshore yuan strengthened 0.1% to 6.397 per dollar and the Japanese yen strengthened 0.1% to 109.94 per dollar.