Market Insider

Traders listening for signals from Bank of Japan

Michael Nagle | Bloomberg | Getty Images

Stocks will likely continue their drift higher Tuesday, while traders keep an eye on international headlines.

The only expected major news event is the Bank of Japan's monetary policy meeting, which is scheduled to conclude overnight Eastern Time, ahead of Tuesday's trading session.

"The market at this point is not expecting any change at all. It should be uneventful unless the Bank of Japan decides to do something," said Andres Jaime, global FX and rates strategist at Barclays.

"It's going to be more on what [BOJ Governor Haruhiko] Kuroda says and what kind of guidance or clues or how far they are from letting long term yields move higher," Jaime said.

In September, the Bank of Japan implemented "yield-curve control" — keeping its 10-year government bond yield at 0 percent in an effort to steepen the yield curve, or increase the difference with negative-yielding shorter-term bond yields. Such steepness theoretically increases profit margins for banks, and greater bank activity is generally better for economic growth.