Morning Bid: Fedspeak to Cut Through the Noise

Morning Bid: Fedspeak to cut through the noise

A look at the day ahead in European and global markets from Ankur Banerjee

Global markets largely shrugged off the Trump administration's immigration crackdown, this time on H-1B visas, with investors focusing on the future path of interest rates as several Fed policymakers are due to speak this week.

The long-awaited U.S. rate cut has come and gone but the Fed indicated a gradual easing in the future. Markets are now pondering what lies ahead, with traders pricing in 44 basis points of easing by the end of the year.

There are two more Fed meetings left this year and with the central bank under intense criticism from Trump, economic data and comments from policymakers will be crucial in determining investor sentiment in the near term.

John Williams, Thomas Barkin and Stephen Miran are due to speak at separate events on Monday while speeches from Raphael Bostic and Michelle Bowman will be in focus on Tuesday. Fed Chair Jerome Powell is also scheduled to speak on Tuesday.

All of which means we are back to keeping notes on Fedspeak and where rates head from here. Fun times!

The dollar began the week steady following last week's volatility, while stocks remained near record highs. Futures pointed to a subdued session, with a bare European calendar expected to keep markets listless.

The Trump administration said on Friday it would ask companies to pay $100,000 for new H-1B worker visas, setting off alarm bells in Silicon Valley and among Indian IT firms as visa holders and tech firms scrambled to make sense of the regulation.

Initial market reaction was muted although India's Nifty 50 slipped 0.3% and the Indian rupee, one of the worst performers in Asia this year, was slightly weaker at the start of the session.

It may take some time for investors to gauge the true cost to margins for many of the companies who rely on the programme, analysts said.

Key developments that could influence markets on Monday:

Euro zone consumer confidence flash for September

(Editing by Jacqueline Wong)