Modest open likely for the U.S markets Monday as the equity gauges in the United States showed a dip on Monday morning, suggesting underlying anxiety in the market.

At 6:25 a.m. ET, Dow Jones futures showed a drop of some 15 points at the open. The S&P and Nasdaq futures were down slightly.

The market is expecting the U.S. central bank’s speculated quarter-point rate cut on Wednesday. The expectation is high that the Fed will cut its interest rate by at least 25 basis points (bps) at its July 30-31 meeting.

Meanwhile, adding hopes, senior U.S. and Chinese negotiators are reopening trade talks that collapsed in May and the agenda is to make some new headway.

However, expectations are minimal during the two-day Shanghai meeting.

In earnings results, Sanofi, Booz Allen Hamilton and Oil States International are companies likely to report their quarterly figures before the opening bell.

Beyond Meat, Arch Capital Group and AK Steel will publish results after the market close.

Oil slips

Oil prices tumbled on Monday as concerns loomed over the outlook for global economic growth and oil demand.

Some thaw in Middle East tensions came in the weekend after talks between Iran and major powers who were a party to the 2015 nuclear deal except the U.S. took place.

Brent crude futures tumbled 0.6 percent or 37 cents, at $63.09 a barrel by 0717 GMT. Prices rose 1.6 percent last week.

The U.S. West Texas Intermediate crude fell 0.4 percent or 20 cents at $56.00 a barrel. WTI was up 1 percent last week.

The GDP data on Friday showed the U.S economic growth did not slow as much it was expected in the second quarter. Consumer spending was high and a better outlook for oil consumption prevailed.

But growth outside the U.S. is slowing reflected in the weak PMIs partly due to the impact of the U.S.-China trade war.

“Global growth is looking shakier ... it’s not disastrous but it’s not shooting the lights out,” said Phin Ziebell, senior economist at National Australia Bank.

Asian stocks slip

Stocks in Asia slipped Monday as investors looked for some positive trends in the U.S.-China trade negotiations this week.

In Chinese shares, the Shanghai Composite slipped 0.12 percent while Hong Kong’s Hang Seng index was down 1.16 percent.

Richard Harris, chief executive at Port Shelter Investment Management told CNBC that the tensions in Hong Kong may go to the advantage for Singapore as banks can move money from one jurisdiction to another.

GettyImages-Stock Market April 22
A trader works ahead of the closing bell on the floor of the New York Stock Exchange (NYSE) on March 18, 2019, in New York City. JOHANNES EISELE/AFP/Getty Images

South Korea’s Kospi dropped 1.78 percent. The Nikkei 225 in Japan was down 0.19 percent while the Topix closed 0.19 percent. Australia’s ASX 200 was an exception and it jumped 0.48 percent.

European stocks inched up Monday showed an uptick buoyed by the revival of U.S-China trade talks in Shanghai. The pan-European Stoxx 600 traded just above the flat line mid-morning.

Gold steady

Gold prices stood steady on Monday. Variations ended ahead of a U.S. Federal Reserve meeting as markets waited for indications of monetary easing in the largest economy in the world.

Spot gold was at $1,418.90 per ounce, as of 0745 GMT. The U.S. gold futures were also flat at $1,418.60 an ounce.

“This week we have the FOMC (Federal Open Market Committee) meeting, where we will see a dovish outlook and the likely weakening of the dollar triggering some upside in gold prices,” said Kunal Shah, head of research at Nirmal Bang Commodities in India.