BEIJING (AP) – Stocks were largely steady on Monday after gains in Asian trading, as investors hoped major central banks will maintain or expand their monetary stimulus policies.
After China cut interest rates last week, the attention will turn to the Federal Reserve, which is expected to refrain Wednesday from raising interest rates – but signal it will soon be ready to hike. And the Bank of Japan is forecast to add to its stimulus.
KEEPING SCORE: Germany’s DAX gained 0.1 percent to 10,806.65, faring better than the rest of Europe after a survey showed its business confidence held up in October despite the Volkswagen scandal and a slowdown in China. France’s CAC-40 index was off 0.6 percent at 4,894.40. Britain’s FTSE 100 shed 0.2 percent to 6.434.46.
Wall Street was set to dip after a series of gains. Dow futures were down 0.1 percent and S&P 500 futures dropped 0.2 percent.
CHINA RATES: Beijing cut interest rates Friday for a sixth time since last November to prop up economic growth, which slowed to a six-year low of 6.9 percent in the latest quarter. The People’s Bank of China also expanded the pool of money available for lending by reducing the minimum reserves banks must hold. Analysts said the rate cut should help put a floor under sinking growth. But they warned that with Chinese debt levels already relatively high, the impact of more reductions will be limited.