SPY closed basically unchanged yesterday, and this morning indicates another open near unchanged after another quiet overnight session as everyone waits for the all-important central bank releases on Wednesday and Thursday. It is also month-end, which might see some window dressing by the close.
- Asian markets closed broadly in the green, with the notable exception once again of the Shanghai Composite, bucking the global trend for the second straight day
- European markets have moved back and forth around the unchanged level, trading slightly higher at 7:50 am EST, with little divergence among them
- The dollar is a touch lower, and commodities a touch higher on light volumes
- Treasury bonds are surprisingly well bid after a strong day yesterday, with the 10 year yield moving from 1.55 on Friday’s close to 1.475 now
- Peripheral bond yields and European banks are close to unchanged
Yesterday was the lightest volume day in 2 weeks, and I expect little excitement today ahead of the FOMC release tomorrow. It’s actually a busy calendar of economic data, including personal income, personal spending, PCE Deflator, CaseShiller Home Price Index, Chicago PMI and Consumer Confidence data all this morning. But in reality, the waiting is likely to continue, with most traders having already placed their bets and waiting for tomorrow.