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Futures trading indicates Wall Street's S&P 500, which is near
record highs, will open steady later in the day.
Europe's Stoxx 600 share index is flat, Hong Kong stocks are
0.8% higher with the liquidation of Chinese property giant
Evergrande in the spotlight, and the dollar index is little
changed.
The mood is sanguine despite Sunday's deadly drone assault on
U.S. troops in Jordan by Iran-backed militants, and as earnings
reports by market heavyweights loom.
Five of the massive "Magnificent Seven" tech stocks that have
dominated the S&P's gains report earnings this week, starting
with Google owner Alphabet and Microsoft on Tuesday.
Traders, in markets almost entirely driven by monetary policy
bets, may have decided against taking decisions - at least until
the Fed signals its interest rate outlook on Wednesday.
Market consensus is for the Fed to hold rates at their highest
since 2001 but cement expectations that it is readying to lower
them. Money markets currently price a first full quarter-point
rate cut by May.
The Bank of England is also expected to keep borrowing costs
steady on Thursday but soften its tone on inflation, echoing
similar commentary by the European Central Bank last week.
The final risk event this week is monthly U.S. jobs data on
Friday. Still, even naturally cautious government bond traders
seem unconcerned about a strong labor market delaying rate cuts.
The yield on the benchmark U.S. 10-year Treasury is down 5 basis
points to 4.10% on Monday.
The U.S. Treasury quarterly borrowing estimate later on Monday
is in focus for bond markets.
Events that could influence U.S. markets on Monday:
Dallas Fed manufacturing business index
Three and six month Treasury bill auctions
US earnings: Whirlpool, Nucor
(Reporting by Naomi Rovnick; Editing by Hugh Lawson)
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