• Shares in Asia were primed to open higher after gains in US stocks pushed the S&P 500 to w/in a whisker of its record high as investors prepare for lower interest rates.
• Equities in Australia and share futures for Japan rose. Gains for Australian miners helped propel local b/marks, reflecting higher iron ore prices, as the country’s equity markets and those in Hong Kong reopen after a long weekend.
• US futures edged upward after the S&P 500 closed Tuesday w/in 0.5% of its record high, achieved early last yr when interest rates remained at pandemic lows. The gains were helped along by bets the Federal Reserve will cut rates as early as March.
• Swap contracts tied to Fed meetings imply a probability of more than 90% that the US central bank brings down its current 5.25% to 5.5% target rate range in March. Across 2024, traders are penciling in nearly 160 bps of rate reductions — more than twice as much as Fed officials signaled earlier this mo. in their new round of qrtrly forecasts.