The North American markets are likely in for a quiet session today as most traders keep to the sidelines in anticipation of Tuesday morning’s meeting of the U.S. Federal Reserve Board.

The Fed is widely expected to signal a cut in U.S. interest rates. The big question is whether the reduction from its current 5.25% will be 50 basis points or just a quarter point.

Toronto’s S&P/TSX composite index and the Dow Jones industrial average remain up about 7% year to date, but both lost some earlier gains during summer as the markets were pulled lower by severe weakness in the U.S. subprime mortgage sector.

A fed rate cut would hopefully help restore some confidence in the markets and the U.S. economy. Many economists and traders say a 50 bp cut would send a clearer message and help to immediately boost investors.

Futures prices for the leading U.S. markets were slightly lower just before the opening bell. None of the S&P 500 companies are scheduled to report earnings today.

Britain’s FTSE 100 was down about 1.8%, while Germany’s DAX index fell 0.6% and France’s CAC-40 lost about 1.7%. Japan’s markets are closed for a holiday, and other Asian stocks lost ground.

World oil prices moved lower today as tropical storm Ingrid sputtered out in the Atlantic, eliminating a potential threat to refineries and oil rigs in the Gulf of Mexico. London Brent crude was trading at about US$75.70 a barrel, down about 50 cents from Friday.

The powerful C$ opened today at 97.24 cents U.S., up from Friday 97.04 cents, its highest close since February 1977.