Asian equity-index futures are signaling slight increases in Japan, Hong Kong, and Australia, with South Korea showing little change. This comes as contracts for US stocks also opened positively, following two consecutive sessions of declines for the S&P 500 and Nasdaq 100 on Tuesday.
The market movement occurs against a backdrop of increasing oil prices and rising bond yields, factors that are keeping traders cautious. The main focus for investors this week is the impending interest rate decision from the Federal Reserve.
The Federal Open Market Committee is scheduled to begin its two-day meeting later today, with market participants largely expecting a rate hike. This would mark the first rate increase by the US Federal Reserve since mid-2023. Analysts at Morgan Stanley anticipate a 25 basis-point hike today and another in December, citing that while inflation is decelerating, the pace is slower than the Fed likely desires.
