The US Federal Reserve is expected to leave its benchmark interest rate unchanged at 5.25-5.5% during a two-day meeting that starts later today, the Financial Times reports.

Watch this space: Analysts think the Fed will signal on Wednesday (or in meeting minutes released later) that it is ready to start cutting rates by September. Recent data shows inflation is under control and the labor market is cooling off, with fewer job gains and rising layoffs.

The central bank of Japan and England will also meet this week, as we noted yesterday. Japan could go for a rate hike (its two-day meeting begins today), while the Bank of England looks set to make a cut when it meets on Thursday.

MEANWHILE- China targets bonuses + compensation for fund managers, bankers: China is intensifying its crackdown on financial sector compensation, extending its reach to mutual fund managers and bankers.

What’s happening? Managers at some state-owned funds have been ordered to return bonuses, as are Hong Kong-based executives at Citi and Everbright. Pundits see the clawbacks happening in the context of Xi Jinping emphasis that “new quality productive forces” (read: tech and manufacturing) should be prioritized as finance gets downplayed.

MARKETS THIS MORNING-

It’s red as far as the eye can see in Asia this morning. All five of the major equities benchmarks we follow are in the red, signaling a “meh” day for investors in Australia, Japan, South Korea, Hong Kong, and China. US and European stock futures are down in overnight trading.

ADX

9,395

+0.8% (YTD: -1.9%)

DFM

4,308

+0.7% (YTD: +6.1%)

Nasdaq Dubai UAE20

3,768

+1.9% (YTD: -1.9%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

5.0% o/n

5.0% 1 yr

TASI

12,121

-0.4% (YTD: +1.3%)

EGX30

28,851

-0.6% (YTD: +15.9%)

S&P 500

5,464

+0.1% (YTD: +14.5%)

FTSE 100

8,292

+0.1% (YTD: +7.2%)

Euro Stoxx 50

4,815

-1.0% (YTD: +6.5%)

Brent crude

USD 79.84

-1.8%

Natural gas (Nymex)

USD 1.91

-4.9%

Gold

USD 2,426

-0.1%

BTC

USD 67,444

-0.9% (YTD: +59.6%)

THE CLOSING BELL-

The ADX rose 0.8% yesterday on turnover of AED 1.7 bn. The index is down 1.9% YTD.

In the green: Commercial Bank International (+11.5%), Gulf Medical Projects Company (+9.2%) and First Abu Dhabi Bank (+6.4%).

In the red: Eshraq Investments (-1.8%), Agility (-1.7%) and Julphar (-1.7%).

Over on the DFM, the index rose 0.7% on turnover of AED 558.1 mn. Meanwhile Nasdaq Dubai closed up 1.9%.

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