“Markets fully expect a rate rise, so market reaction is likely to be muted unless the Fed disappoints which would lead to lower bond yields and a lower dollar, although that is not our expectation,” Mike Bell, global market strategist at JPMorgan Asset Management, said, according to Bloomberg. “All attention is likely to be focused on the press conference to see whether a more hawkish tone is struck, if so yields and the dollar could move higher still.”
Along with the Fed, the Bank of Japan, Bank of England and the Swiss National Bank are also set to hold meetings this week.
The equities markets were also being dragged down Monday by weakness among drug producers after a report by the Congressional Budget Office on costs associated with the Republican plan to replace the Affordable Care Act, or Obamacare, could add to opposition to the proposal, reports Yashaswini Swamynathan for Reuters.
“There is a lot of uncertainty in the healthcare sector,” Brant Houston, managing director at CIBC Atlantic Trust Private Wealth Management, told Reuters. “Until this whole debate plays out, investors are going to be a little bit concerned about how these stocks will perform.”
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