The Federal Reserve's interest rate decision is imminent, and the Nasdaq futures in pre-market trading have fallen, with NVIDIA dropping over 2% in pre-market, and gold slightly down

At the beginning of a crucial central bank decision week, global stock markets experienced narrow fluctuations, with investors widely expecting the Federal Reserve to soon initiate a series of interest rate cuts.

In pre-market trading, cryptocurrency exchange Gemini continued its gains from the previous trading day, now up 3.8%; Tesla rose over 2% in pre-market. Nasdaq 100 index futures expanded their decline to 0.1%, reaching an intraday low. NVIDIA fell over 2% in pre-market.

European stock markets rose, with French stocks hitting intraday highs. U.S. Treasury yields edged higher, the dollar exchange rate remained virtually unchanged, and gold prices slightly dipped.

• In pre-market trading, cryptocurrency exchange Gemini continued its gains from the previous trading day, now up 3.8%; Tesla rose over 2% in pre-market. Nasdaq 100 index futures expanded their decline to 0.1%, reaching an intraday low. NVIDIA fell over 2% in pre-market.
• Major European stock markets opened slightly higher, with the German DAX 30 index rising 0.37% at the open. The UK FTSE 100 index opened up 0.13%. The European Stoxx 50 index opened up 0.42%. The French CAC 40 index's gains expanded to 1.1%, hitting intraday highs.
• The Seoul Composite Index in South Korea closed up 0.3%.
• The U.S. dollar spot index showed little change.
• The British pound rose 0.3% against the U.S. dollar, trading at 1.3596, the highest level since July 10.
• The yield on the U.S. 10-year Treasury rose 1 basis point to 4.07%, with long-term bonds leading the decline.
• Brent crude oil rose 0.4%, trading at $67.29 per barrel.
• Spot gold fell 0.03%, trading at $3642 per ounce.

Major Stock Indices Rise, Bond Market Under Pressure

On Monday, market risk appetite clearly rebounded. U.S. stock index futures indicated that Wall Street would continue its upward trend, while European stock markets also generally rose. In Asia, the MSCI Asia-Pacific index briefly broke through the record high set in February 2021, before the gains receded somewhat.

In contrast, the bond market faced pressure. The yield on the U.S. 10-year Treasury rose 1 basis point to 4.07%, with long-term bonds leading the decline. In Europe, French bonds underperformed the market due to Fitch's downgrade of the country's credit rating following political turmoil.

Currently, investors are focused on the Federal Reserve's interest rate meeting scheduled for this Wednesday. The market has almost fully priced in that the Federal Reserve will implement interest rate cuts in the next three meetings.

However, the market is not without concerns. Michael Brown, a research strategist at Pepperstone Group Ltd., stated, "If the Federal Reserve conveys hawkish signals, risk assets may experience turbulence this week." But he also believes:

"The path of least resistance remains upward, as economic and earnings growth are solid, the tone in trade is becoming calmer, and the accommodative monetary policy stance also helps boost the market." Spot gold fell 0.03%, reported at $3,642 per ounce.

Global Central Bank Super Week

The Federal Reserve is not the only focus this week. A busy global central bank policy release period is set to impact half of the world's ten largest traded currencies.

The Bank of Canada will announce its interest rate decision on Wednesday, the Bank of England's decision will be revealed on Thursday, and the Bank of Japan will make its appearance at the end of the week. The policy directions of these central banks, along with the Federal Reserve's statements, will provide global investors with key guidance on the macro policy direction for the coming months