Higher open likely for the U.S. markets Monday after major stock futures moved up in the morning.  

There is cheer in the market, fed by expectations of a rate cut around the Federal Reserve meeting this week.

At 6 a.m. ET, Dow Jones showed a positive open of more than 45 points. Futures on the S&P and Nasdaq were also up.

The market expects the Fed will cut interest rates. But some analysts told CNBC that a change in monetary policy is unlikely this week. Fed watchers also expect Chairman Jerome Powell to drop the word “patient” from his assessment and head for a cut in July.

 In terms of data, the Empire State manufacturing data and the National Association of Home Builders housing index will be released at 10 a.m. ET.

Asian markets mixed

Asia Pacific stocks were mixed on Monday as investors awaited U.S. Federal Reserve meeting later in the week.

Mainland Chinese stocks also showed mixed signals. Shanghai composite rose 0.2 percent while Shenzhen composite fell 0.195 percent.

In Hong Kong, the Hang Seng index rose 0.5 percent at the final hour of trade.

Japan’s Nikkei 225 closed just above the flat line while the Topix slipped 0.45 percent. South Korea’s Kospi shed 0.22 percent, while Australia’s ASX 200 fell 0.35 percent.

In European stocks, the pan-European Stoxx 600 traded around the flat line during the Monday morning session.

Oil market down

Oil prices slipped Monday over fears of an economic slowdown as a fall out of trade disputes and overwhelmed the anxiety on supply crunch triggered by attacks on oil tankers in the Gulf of Oman last week.

Brent futures fell 0.4 percent to $61.76 a barrel by 0750 GMT.

The U.S. West Texas Intermediate (WTI) crude futures also lost 0.4 percent at $52.29.

Concerns on global demand shot up after the demand outlook in 2019 from the International Energy Agency (IEA) slashed growth estimate by 100,000 barrels to 1.2 million barrels per day.

It said the situation will improve by 2020 under stimulus packages and higher demand in developing countries.

Gold price falls from a high 

This followed a strengthening of the dollar at a multi-week high over strong U.S. retail sales data, and ahead of the U.S. Fed Reserve meeting this week.

Spot gold fell 0.3 percent at $1,337.31 per ounce at 0713 GMT. Gold was $1,358.04 on Friday, the highest since April 11, 2018. The U.S. gold futures were down 0.2 percent at $1,341.70 an ounce.

Analyzing the effects of gold on a rate cut, Benjamin Lu, an analyst with Singapore-based Phillip Futures said if Fed cuts rates, bond prices will fall and yields would go up. Such a  scene is not good for gold.

“Rate cut can boost risk appetite and limit gold’s gains,” Lu added.