U.S. stock index futures rose slightly, the dollar fell slightly, copper prices hit a new high, and the 10-year Japanese government bond yield reached its highest level since July 2007

On Monday, Asian stock markets rose slightly as investors prepared for "Super Central Bank Week." U.S. stock index futures edged higher, the U.S. dollar index dipped slightly, and Japan's 10-year government bond yield reached its highest level since July 2007.

Market caution persists, with global stock indices continuing to hover near the historical highs set in October, as investors remain skeptical about the sustainability of this year's AI-driven rally.

Japan's 5-year government bond yield rose to 1.44%, the highest since June 2008. The 10-year government bond yield increased to 1.955%, the highest level since July 2007. The 30-year government bond yield rose by 2.5 basis points to 3.380%. Japan's November Economic Outlook Index stood at 50.3, far below the expected 53.1. This morning, Japan reported a larger-than-expected contraction in third-quarter GDP.

LME copper prices extended gains, breaking through $11,742 per ton, setting a new record high.

Federal Reserve's decision is the focus this week, but the path for 2026 remains unclear

Chris Weston, head of research at Pepperstone Group, stated in a report that the Federal Open Market Committee meeting will be the top risk event this week. A 25 basis point rate cut is fully priced in and seen as a certainty, but the real debate centers on what a "hawkish rate cut" would look like, and whether the statement and Federal Reserve Chairman Jerome Powell's press conference will align with this widely anticipated outcome.

Barclays strategist Andrea Kiguel and others noted in a report to clients that while the Federal Reserve may cut rates this week, the rate path for 2026 is more uncertain, as committee members need to balance the persistent price pressures from tariffs, a cooling labor market, and the potential acceleration of economic activity in the coming months. Barclays believes that 2026 could be a year of long-term inaction, although if inflation momentum continues, the market may attempt to raise rate hike expectations.

The U.S. will release delayed job vacancy data, weekly initial jobless claims, and the Employment Cost Index this week. Economists expect that, aside from the Federal Reserve's decision, the Bank of Canada, Swiss National Bank, and Reserve Bank of Australia will keep their respective policy rates unchanged this week.

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