FOMC Preview

What’s in Today’s Report:

• FOMC Preview

U.S. equity futures are little changed this morning as yesterday’s late day sprint to fresh records is digested ahead of the Fed meeting while bond markets remain calm.

Economically, Germany’s March ZEW Survey came in slightly better than expected which is supporting modest risk on money flows in both European and U.S. markets.

From a potential catalyst standpoint, it is lining up to be a busy morning with several notable economic reports due to be released including: Retail Sales (E: -0.5%), Import & Export Prices (E: 1.0%, 1.0%) and Industrial Production (E: 0.5%).

However with the FOMC meeting beginning today, there will likely be some degree of “Fed paralysis” that limits the market’s reaction to any of this morning’s data points.

One thing that could move markets despite focus already shifting to the Fed is the 20-Yr Treasury Bond Auction at 1:00 p.m. ET today as a disappointing auction could trigger another spike in yields which would in turn weigh on stocks, particularly the tech sector.