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Top 5 Things To Know In The Market On Tuesday

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by: Investing.com

Here are the top five things you need to know in the financial markets on Tuesday, September 19:

1. Federal Reserve kicks off 2-day policy meeting

The Fed is likely to announce a plan to start shrinking its massive $4.5 trillion balance sheet as its two-day policy meeting kicks off, but is widely expected to keep interest rates unchanged for now.

Markets will be looking for further clues on the timing of the next rate hike, with around 60% of market players expecting a move by December, according to Investing.com's Fed Rate Monitor Tool.

Besides the Fed, today's economic calendar also includes data on housing starts and building permits at 8:30 AM ET (1230 GMT). At the same time, reports on import prices and the current account balance will also be released.

The dollar index, which tracks the greenback against a basket of six major rivals, was a shade lower at 91.63.

2. Trump sets sights on North Korea, Iran in major UN speech

North Korea's nuclear ambitions will be center stage when U.S. President Donald Trump addresses world leaders at the United Nations at 10:30 AM ET (1430 GMT).

Senior White House officials said Trump would also target Iran's nuclear program, single out Venezuela for criticism and refer to Islamist militants as "losers" in his first appearance in the green-marbled U.N. General Assembly hall.

3. Global stocks mixed as caution dominates

Global stock markets were mixed in subdued trade, as investors turned cautious while awaiting fresh signals on U.S. monetary policy.

Asian shares slipped, with benchmarks in Shanghai and Seoul ending in negative territory. Japan markets were an outlier, however, soaring after reopening after a public holiday.

In Europe, shares were slightly lower in mid-morning trade, with most major bourses across the region in the red.

Meanwhile, U.S. stocks pointed to a flat open on Wall Street as investors paused for breath following a recent run of record highs for the Dow and S&P 500.

4. Oil prices push higher as focus shifts to API report

Crude oil prices rose back towards last week's multi-month highs as investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products to weigh what the impact of recent storm activity was on supply and demand.

Industry group The American Petroleum Institute is due to release its weekly report at 4:30 PM ET (2030 GMT), amid expectations for an oil-stock gain of around 2.9 million barrels, which would mark the third weekly increase in a row.

U.S. West Texas Intermediate (WTI) crude futures tacked on 28 cents, or around 0.6%, to $50.63 a barrel, not far from a five-month high of $50.88 touched last Thursday.

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., was up 22 cents, or 0.4%, to $55.70 a barrel. It traded as high as $55.99 intraday Thursday, a level last seen since April.

5. German investor confidence surges as euro fears subside

German investor confidence rose for the first time in four months in September, a survey showed, suggesting that concern over the risk to growth from the strengthening euro is subsiding.

The ZEW research institute said its monthly survey showed its economic sentiment index jumped to 17.0. Economists had forecast a reading of 12.5, up from 10.0 points in the previous month.

The euro was up around 0.3% against the dollar to 1.1990, moving back within sight of a 2-1/2 year high near 1.2090 hit in early September.

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