Global markets edge up ahead of Trump speech, Fed meeting

People are reflected on an electronic stock indicator of a securities firm in Tokyo on Thursday

US government bonds ticked lower Monday, extending recent declines as traders prepare for this week's Federal Reserve meeting. The Nasdaq Composite Index was up 11.55 points, or 0.18 percent, to 6,460.02.

European and United States stocks looked set to echo those gains, with Eurostoxx 50 futures up 0.46 per cent and the FTSE 0.43 percent, while E-Mini futures for the S&P 500 rose 0.25 per cent.

Some details of Trump's tax plans may also emerge this week, while elections in Germany and New Zealand will add extra political uncertainty to the mix.

Thirteen of the 20 most active stocks ended in the green, led by developer Filinvest Land Inc. which climbed 5.4 percent to P2.13 and conglomerate Ayala Corp. which advanced 4.7 percent to P972.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 per cent to reach heights not visited since late 2007.

For markets, the main event will be the Fed's meeting on Tuesday and Wednesday, where it is likely to take another step toward policy normalisation amid what is rapidly becoming a global trend.

A possible new rate hike would make home-buying more expensive and increase monthly payments for credit cards.

"The primary reason USA yields are creeping up is after thinking about it clearly the market has decided that the Fed is unlikely to change the December 2017 dot - still saying they expect one more rate hike in 2017", BMO's Anderson said.

"With a backdrop of a number of central bank officials becoming increasingly hawkish, the stage is set for an unwind of market leverage and carry".

Another rate hike is unlikely this time around as the disruptions caused by Hurricanes Harvey and Irma have distorted the overall picture of the USA economy (witness the spike in initial jobless claims in what has been an otherwise uninterrupted downtrend).

On Monday, the pound was a shade softer at US$1.3585 but not far from the peak of US$1.3615.

CURRENCY: The dollar gained to 111.19 yen from Friday's 110.82 yen. The euro was steady at $1.1945, sandwiched between support at $1.1836 and resistance at $1.2092. Northrop's shares were little changed. Strong demand for higher risk assets should also keep pressure on gold prices.

ENERGY: Benchmark U.S. crude added 2 cents to $49.91 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price worldwide oils, dropped 37 cents to $55.25 in London.

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