U.S stocks mixed, dollar weakens before rate call

U.S. stocks remained listless, the dollar slipped and Treasuries edged higher as investors count down to the Federal Reserve’s rate decision and press conference. Commodities advanced as oil rose alongside industrial metals.

The S&P 500 Index churned near all-time highs, stuck in one of the tightest trading ranges in history as attention turned to expected commentary on reducing the Fed’s balance sheet. Bloomberg’s dollar index fell a second day and 10-year Treasury yields fell to 2.23 percent. The Mexican peso slipped
after a 7.2 magnitude earthquake struck. U.S. crude held at $50 a barrel.

Financial markets largely remain calm - even after Donald Trump used a UN speech to threaten to annihilate North Korea - as all eyes turn to Wednesday's Fed decision. Expectations are high that the central bank of the world's biggest economy will unveil plans to start shrinking its $4.5 trillion balance sheet, while any clues on the chances of a rate increase this year could tip the balance - market expectations of another hike in 2017 are at about 50%.

Source: Bloomberg Pro Terminal

Jr Trader Alexander Kumanov

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