Stock markets around the world have been steady overnight as markets prepare for the return of US traders. NASDAQ Futures had been underperforming overnight but has rebounded in the last few minutes. Big Tech remains an area of potential vulnerability with earnings expectations running really high after the sector left everything else in its dust over the last few months.
The US dollar is up slightly against gold and other major currencies. Later today, minutes from the last FOMC meeting are due. Traders may be looking for more hints regarding the Fed's future plans. Press reports Tuesday suggested the Fed could announce the start of its balance sheet reduction plan in September and hold off on raising rates until December. I agree on rates but think a government shutdown could push the balance sheet decision to October or later.
Crude oil is down 1.5% today after Russia indicated it opposes deeper production cuts on the grounds that it could cause prices to overshoot to the upside and cede more market share to US shale producers. CAD has not been impacted by this yet, indicating that the loonie remains more sensitive to speculation on a potential Bank of Canada rate hike, possibly as soon as next week.