A look at the day ahead from Karin Strohecker.

It’s deadline day for China’s embattled property giant Evergrande , labouring under a $305 billion mountain of debt, to pay its coupon on a dollar bond or career towards default – a prospect that has sent chills through markets.

It doesn’t matter if the payment is made. However, it’s not likely that China’s overextended real estate sector (a leading force in Asia’s corporate bond market) will survive disruption. Globally, the impact on China’s financial sector, commodities imports and economic growth will all be felt.

A Fed that is more cautious will likely begin to reduce its monthly bond purchases in November, which would be a significant relief. The Fed signaled that interest rates may rise faster than anticipated at the conclusion of Wednesday’s two-day meeting. This is as it continues to move away from its pandemic crisis policy.

The U.S. debt ceiling is nearing its end, and influenza season in many areas of the globe is fast approaching.

For today, however, optimism reigns.

Shares of Evergrande (HK) rose 32% in Hong Kong following the chairman’s attempt to reassure consumers. There are many Asian markets trending higher. Both European and U.S. stocks futures point to cautious gains with futures rising and the dollar taking a breather.

With policymakers in the U.K. and Switzerland due to make their decisions, as well as those from South Africa, Turkey, South Africa and Turkey, it is continuing with the central banking marathon. Norway could be the first western central bank that offers post-pandemic rate rises.

Markets will have more information about the future economic direction from data on the PMIs that are coming in from all over the world, as well as additional clues.

Key developments that should provide more direction to markets on Thursday:

– Evergrande seeks to reassure retail investors as key debt deadline looms

– Central banks: Norway, UK, Switzerland, South Africa, Turkey, Taiwan, Philippines

– Bank of England expected to keep rates steady as inflation risks mount

– Fed issues quarterly accounts

– U.S. weekly initial jobless claims

– Auctions: US 4 week bills, 10-yr TIPS