Contents
Investors are eagerly awaiting the release of the U.S. consumer and producer price index data for September. This data is highly anticipated as it could shed more light on the future direction of interest rates, following a robust jobs report last Friday. August’s Consumer Price Index (CPI) report saw the sharpest increase in 14 months due to surging gasoline costs. However, core inflation, excluding food and fuel, rose at its slowest pace in nearly two years.
With the latest job data showing strong employment but slowing wage growth, the market is watching closely. Strong inflation figures could affirm the Fed’s stance on keeping interest rates elevated. The Fed is expected to maintain rates at its upcoming Oct 31-Nov 1 meeting, but some traders are betting on a rate hike.
Fed Minutes: Clues on Interest Rates
On Wednesday, the Federal Reserve will release the minutes of its September meeting. Market news observers are keen to decipher whether policymakers are leaning towards another rate hike by year-end. Additionally, key Fed officials, including Atlanta Fed President Raphael Bostic, Minneapolis Fed President Neel Kashkari, and others, will provide insights during the week. These developments hold the potential to influence market sentiment.
Read More: Birkenstock to Price IPO at Top of Range for $10 Billion Valuation
Third-Quarter Earnings Season Commences
This week marks the kickoff of the third-quarter earnings season, with major banks such as JPMorgan, Citigroup, and Wells Fargo set to report before the market news opens on Friday. Investors are on the lookout for signs of higher rates impacting loan demand and consumer behavior.
Notable companies reporting during the week include PepsiCo, Delta Air Lines, and UnitedHealth Group. The earnings season’s outcome may shape the short-term trajectory of stocks, even as the S&P 500 retains a 10% gain for the year, despite recent pullbacks.
Oil Prices: Volatility Persists Market News
Oil markets experienced their steepest weekly losses since March last week, partly due to Russia partially lifting its fuel export ban and concerns about macroeconomic headwinds. Brent futures settled at $84.58 per barrel, while U.S. West Texas Intermediate crude futures settled at $82.79.
Persistent worries about high interest rates potentially slowing global growth and reducing fuel demand remain a concern. Despite supply cuts by Saudi Arabia and Russia, who plan to continue cuts through the year, escalating geopolitical risks in the Middle East may impact oil prices in the upcoming week.
IMF and World Bank Meetings: Inflation Worries Persist
Global finance officials and central bankers gather in Marrakesh for the annual meetings of the International Monetary Fund and the World Bank. Against a backdrop of concerns about inflation’s control without destabilizing major economies, these meetings hold significant importance.
Central bankers and policymakers will make multiple appearances, and the IMF’s World Economic Outlook, featuring updated forecasts, will be released on Tuesday. These events will be closely monitored for their potential impact on the global economy.
Do you need help in finding the best forex broker for your needs?
Click here: The Best Forex Broker Finder
