Data expected on Monday includes a report on the US housing market that is likely to show housing starts fell to a 1.19 million-unit rate in August from a 1.21 million-unit pace in the previous month.
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The central bank’s two-day meeting will conclude with Fed Chair Janet Yellen’s press conference at 2:00 p.m. ET on Wednesday.
Investors don’t expect the Fed to raise interest rates, but they will keep an eye on its plans for the rest of the year.
In other energy trading, wholesale gasoline sank 6 cents, or 4 percent, to $1.36 a gallon.
Energy shares .SPNY slipped 0.1 percent, pulling back as oil prices pared gains during the session.
On Wall Street, there was little movement as the Dow Jones industrial average faded 3.63 points at 18,120.17, while the broader S&P 500 index dipped 0.04 of a point at 2,139.12. Chevron rose 1 percent. While investors didn’t expect an increase in USA interest rates, the Japanese central bank is expected to take new steps to boost the nation’s ailing economy. Eurostat reported that construction output in the Eurozone rose a calendar-adjusted 3.1 percent year-over-year in July, faster than the 0.6 percent rate in June. The Standard & Poor’s 500 index lost 0.04 points to 2,139.12.
Most of the major sectors continue to show only modest moves on the day, although considerable strength remains visible among biotechnology stocks.
The S&P/TSX composite index was up 93.16 points at 14,615.14 – down slightly from a triple-digit gain of 112.02 in late morning trading – helped by the energy sector as the price of oil pushed higher.
CURRENCIES: The euro rose to $1.1180 from $1.1157. Its stock lost $2.39, or 29.4 percent, to $5.73. Benchmark U.S. crude added 84 cents, or 1.9 percent, to $44.89 a barrel in NY. At the same time, the dollar lost 0.4% against the yen before ending at 102.29 yen.
The Fed’s two-day meeting starts on Tuesday in which policymakers will debate over the USA economy and its ability to absorb a rate hike.
Murphy Oil jumped $1.07, or 4 percent, to $27.58, Transocean rose 38 cents, or 4 percent, to $9.52. Eye drug maker Regeneron Pharmaceuticals fell $5.80, or 1.4 percent, to $402.83. The technology giant’s stock rose 79 cents, or 1.4 percent, to $57.60. Natural gas jumped 11 cents, or 3.9 percent, to $3.05 per 1,000 cubic feet.
In commodities trading, gold futures, which slid USD24.30 or 1.8% to USD1,310.20 an ounce in the previous week, are climbing USD6 to USD1,316.20 an ounce. Tessera’s stock was up 2.7 per cent. Lennar, which reported strong quarter results, shed $1.32, or 2.9 percent, to $43.77. General Electric rose 0.8 percent. Silver fell 1 cent to $19.28 an ounce.
Traders generally had not expected the Fed to raise rates, with bets before the meeting of only an 18 percent chance of a hike, according to the CME FedWatch website. Tokyo’s benchmark Nikkei 225 closed down 0.2% and South Korea’s Kospi advanced 0.5%.
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The Dow Jones industrial average gained 49 points, or 0.3 percent, to 18,177.
