US equity investors will look out for the Federal Reserve's latest meeting minutes this week to evaluate market expectations for continued policy easing next year, while keeping an eye on market leadership change and a blistering precious metals rally.
* The Federal Open Market Committee meeting minutes are due Tuesday.
* The FOMC minutes could "further expand upon discussions surrounding ample reserves, views on whether the Fed did enough with its liquidity injections, and the range of opinions around the timing and magnitude of further easing," according to a Scotiabank note.
* The probability of an interest-rate cut in April is higher than a policy pause (45% versus 38%), according to the CME FedWatch tool early Monday. If the Fed were not to cut by 25 basis points in April, then the FOMC is highly likely to reduce the target rate for fed funds in June, as the chances of a hold in that month are only 17%.
* A major announcement investors expect imminently is the nomination of Fed Chair Jerome Powell's replacement. President Donald Trump, who will nominate the next Fed chair, has repeatedly said he would like the Fed to lower interest rates.
* Last week, basic materials, technology, healthcare, industrials, and financials were among the top five gainers, implying sector leadership outside of technology-related areas, according to data compiled by Finviz. Over the past month, the biggest three outperforming peer groups were basic materials, financials, and industrials.
* Silver futures were down 2.9% to $74.92 early Monday, after beginning the year at around $29. Silver prices earlier climbed past $80 an ounce, driven by industrial and investment demand, shrinking inventories, heightened geopolitical tensions, and growing expectations of another cut in the US interest rates, Reuters reported on Monday.
* Gold futures traded 1.5% lower to $4,482.81, after beginning this year at around $2,650.
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