Futures, Stocks Steady as Fed Meets; Oil Advances

U.S. equity futures and Treasuries were little changed, stuck in a holding pattern before a policy decision from the Federal Reserve. Oil extended a powerful rally. Contracts on the S&P 500 index steadied after the underlying gauge snapped a three-day winning streak amid weakness in technology and real estate. Energy firms led gains in European stocks. The 10-year Treasury yield held around 1.5%. The dollar was steady versus major peers.

Investors have turned cautious ahead of the Fed’s policy decision amid speculation officials could give an indication about their 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.

The so-called dot plot is expected to point to an interest-rate increase in 2023, while the central bank is unlikely to signal a scaling back of bond purchases until later this year.

Here are some key events to watch this week:

The Federal Open Market Committee rate decision comes on Wednesday, with a news conference from Jerome Powell afterU.S. President Joe Biden and Russia’s Vladimir Putin meet Wednesday in GenevaU.S. Treasury Secretary Janet Yellen testifies before a House panel Thursday on the federal budgetRate decisions come from Switzerland and Norway on ThursdayThe Bank of Japan’s monetary policy decision is on Friday

These are some of the main moves in markets:

Stocks

Futures on the S&P 500 Index were little changed at 8:52 a.m. London time.The Stoxx Europe 600 Index increased 0.1%.The MSCI Asia Pacific Index declined 0.3%.The MSCI Emerging Market Index dipped 0.5%.

Currencies

The Bloomberg Dollar Spot Index dipped 0.1%.The euro was little changed at $1.213.The British pound jumped 0.2% to $1.4116.The onshore yuan strengthened 0.1% to 6.398 per dollar.The Japanese yen strengthened 0.1% to 109.94 per dollar.

Bonds

The yield on 10-year Treasuries increased less than one basis point to 1.49%.The yield on two-year Treasuries gained less than one basis point to 0.17%.Germany’s 10-year yield sank one basis point to -0.24%.Japan’s 10-year yield was unchanged at 0.051%.Britain’s 10-year yield rose less than one basis point to 0.761%.

Commodities

West Texas Intermediate crude gained 0.4% to $72.42 a barrel.Brent crude increased 0.4% to $74.29 a barrel.Gold strengthened 0.1% to $1,860.28 an ounce.

Futures, Stocks Steady as Fed Meets; Oil Advances: Markets Wrap, CNBC, Jun 16