Tuesday, September 21 will be another relatively quiet market day in terms of fundamental publications.
The most important reports expected today are the building permits and housing starts for August in the United States. Canada will also publish its new housing price index today.
Other data published earlier in the day included the public sector net borrowing in the United Kingdom in August. This report was rather disappointing, coming in at -20.5 billion British pounds, versus a forecast of -15.6 billion GBP.
Otherwise, today's market sentiment is slightly better compared to last week or yesterday. Investors are still a little spooked over Evergrande Group’s upcoming default but some market experts have been saying that the crisis in property development in China might not be as big as previously feared.
In addition, sentiment is also helped by reassurances by influential central banks around the globe that hawkishness may be off the table while the coronavirus pandemic continues to rage on.
The Bank of Japan, the Federal Reserve, and the Bank of England will all hold monetary policy meetings this week. In fact, the Fed’s meeting is beginning today. However, Jerome Powell and his colleagues are expected to commit to further dovishness because of Covid-19 and the recent slump in inflation seen in the United States.
Thus, with the promise of more stimulus in the near future, market sentiment is improving. Thanks to that, today US stock indices will trade upwards due to hopes that the economy will remain well supported by the Fed and the United States government, which too is still working on stimulus bills.
Companies to keep an eye on today include Adobe and FedEx as they publish their most recent earnings report later today.
