Market Buzz: US Fed’s policy meeting to set course

Russian floors opened Monday with gains on mixed sentiment on the foreign markets and anticipation of signals from the US.

On Friday June 14 Russian stocks closed higher. MICEX added 1.38 percent on its way to the psychological barrier of 1,300 points, RTS advanced 2.56 percent to end at 1,293.88.

Europe ended June 14 with gains on easing fears over Fed’s upcoming decision on its monetary policy, however for the week the European stocks have posted the fourth-straight weekly drop.

The Stoxx Europe 600 index added 0.2percent to close at 291.13, partly rebounding after four days of losses.

London's FTSE 100 index of leading shares ended up 0.06 percent at 6,308.26 points. In Frankfurt the DAX 30 added 0.4 percent to close at 8,127.96 points, while in Paris the CAC 40 rose 0.19 percent to end at 3,805.16.

US stocks ended lower Friday on weak economic reports and caution ahead of the forthcoming Federal Reserve policy meeting. A flat reading on US industrial production in May and a drop in the University of Michigan consumer sentiment index cooled the trade.

The Dow Jones Industrial Average closed down 105 points, or 0.70 percent, at 15,070. The S&P 500 lost 9 points or 0.59 percent at 1,626, while the NASDAQ fell 21 points, or 0.63 percent, to 3,423.

However, the negative data cheered foreign investors. Also Friday the IMF said the Fed will keep in place its bond-buying program through the end of the year and the phase-out would be "very gradual."

The closely-watched Federal Reserve two-day policy meeting will start Tuesday. Markets have been under pressure of the Fed’s upcoming decision since late May when Fed Chairman Ben Bernanke said the US central bank might pull back on its stimulus if indicators, especially the job market, steadily improve.

On Monday the US is to publish the Empire state manufacturing index.

Also Monday, finance ministers and central bankers from the G8 group are to hold the first day of a two-day summit in Northern Ireland.

Asian stocks climbed Monday on hopes that the US Fed will hold on to its bond purchases.

In Japan the Nikkei 225 advanced 2.2 percent to 12,960.81, extending Friday's 2.4 percent gain. Hong Kong's Hang Seng added 1.3 percent to 21,251.17. Australia's S&P/ASX 200 added 0.3 percent to 4,905.90. South Korea's Kospi slipped 0.1 percent to 1,887.08. Benchmarks in mainland China, Singapore and Taiwan also rose while Thailand's SET fell.

Brent oil is currently trading higher 0.03 percent up to almost $106. WTI is currently down, losing 0.04 percent to $98.