With traders looking ahead to this week Federal Reserve meeting, stocks may turn in a lackluster performance in early trading on Monday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 22 points.
Many traders are likely to remain on the sidelines in the days leading up to the conclusion of the Fed's two-day monetary policy meeting on Thursday.
The Fed is due to announce its latest decision on monetary policy Thursday afternoon followed by a news conference by Chairman Ben Bernanke.
Uncertainty about whether the Fed will announce another round of quantitative easing is likely to keep traders reluctant to make any significant moves.
Ahead of the announcement from the Fed, traders are likely to keep a close eye on Europe, as Germany's Constitutional Court is expected to rule on a temporary injunction request against Europe's permanent bailout fund.
Developments in Greece also remain in focus, as Greek Prime Minister Antonis Samaras has reportedly faced trouble getting the country's lenders to sign off on his government's proposed budget cuts.
On Monday, some negative sentiment may be generated by disappointing trade data from China, with a report showing an unexpected year-over-year drop in imports in the month of August.
by RTT Staff Writer
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