Global share and bond markets were cautiously upbeat on Monday as investors priced in a likely Federal Reserve rate cut this week, with futures assigning an 86 per cent chance of a quarter-point move. A Reuters poll indicated most analysts expect a cut, though the meeting is shaping up to be unusually divisive within the Federal Open Market Committee. S&P 500 and Nasdaq futures rose 0.2 per cent, while MSCI's Asia-Pacific ex-Japan index added 0.1 per cent. Chinese blue chips climbed 1.0 per cent after November exports beat forecasts, though softer imports highlighted weak domestic demand. Japan's Nikkei was flat, South Korea's Kospi gained 0.8 per cent, and European futures edged lower, with EUROSTOXX 50 and FTSE futures slipping 0.1 per cent. Bond markets remained on edge over the risk of hawkish Fed guidance, pushing 10-year US Treasury yields to 4.142 per cent after last week's rise. The dollar eased slightly, while the yen strengthened on expectations the Bank of Japan could raise rates next week. Commodities were broadly supported by hopes of additional US stimulus. Attribution: Reuters
