On Monday, Philadelphia Fed President Patrick Harker sounded a bit hawkish in his interview, saying that "I'd like to start the taper process soon so that we can finish the tapering process, so if we need to increase the policy rate, we have the room to do that. And I think we need to buy ourselves that option."
Nevertheless, Jerome Powell failed to announce the date when the tapering starts. Moreover, considering that recent macro data have been weak, the tapering might not start this year at all, despite all the hawkish chatter by several FOMC participants.
Equity markets were trying to recover from last week's sell-off, and the medium-term uptrend remains intact in most US and EU indices.
From other news, the WTI oil is advancing again, and it managed to jump above the important 70 USD threshold again, rising beyond the 50-day moving average again. As long as it trades above it (69.60 USD), oil's short-term outlook seems bullish. The next resistance is expected at September highs of 70.50 USD.
There are no important macro data on the agenda today, but Tuesday, the US CPI for August will be released. Since inflation remains highly elevated and economic data are starting to point lower, fears of stagflation have risen.