- Update on US inflation
- Q3 earnings season begins
- IMF Meetings
Monday 10 October
It’s a quiet and uneventful start to the week with Bank Holidays for Japan, the US and Canada partially affecting markets. Otherwise, there’s the release of the Euro zone’s Sentix Investor Confidence survey and a speech from US Federal Reserve FOMC member Lael Brainard. It’s also Day 1 of IMF Meetings which run throughout the week. Today’s earnings announcements include CLS Holdings and Radient Technologies.
Tuesday 11 October
A busier day, but more second order data releases. Overnight there’s the British Retail Consortium’s Retail Sales Monitor, Japan’s Current Account, and Economy Watchers Sentiment. From Germany we have Wholesale Prices, from Italy we have Industrial Production, and from the UK we have the Claimant Count, Unemployment Rate, and Average Earnings Index. We also have speeches from representatives of US, Swiss, and UK central banks. Tuesday’s most significant earnings releases include Delta Air Lines, BlackRock, and Esports Entertainment.
Wednesday 12 October
Overnight we have Japanese Core Machinery Orders, and Preliminary Machine Tool Orders. From the UK we have the monthly GDP update along with Construction Output, the Goods Trade Balance, Index of Services, Industrial Production, and Manufacturing Production. Then there’s Euro zone Industrial Production. In the afternoon there’s the latest reading on US PPI, with minutes from last month’s FOMC meeting released at 19:00 BST. Investors will be paying close attention to these, looking for any clues as to when Fed members will end their rate hiking programme. Major earnings reports come from Alcoa and PepsiCo.
Thursday 13 October
Overnight we have Japanese Bank Lending, PPI and Australian Inflation Expectations. From the UK we have the Bank of England’s Credit Conditions Survey. Later, there’s Weekly Unemployment Claims from the US along with Crude Oil Inventories and the Federal Budget Balance. But the most significant release this week is the update on US CPI. This ticked higher last month, indicating that inflation had not yet peaked. This led to another sharp sell-off across risk assets as it indicated that the Federal Reserve would continue to raise interest rates aggressively. There was a similar market reaction at the end of September when Core PCE (Personal Consumption Expenditures) the Fed’s preferred inflation measure, also indicated that price increases had yet to top. Headline PCE, which includes food and energy, did show a decline. But it was concerning that Core PCE continues to rise as this means price increases in the services side of the economy are taking hold. Unlike fluctuations in energy prices which tend to be self-correcting, these are more difficult to deal with. Investors will be listening carefully for comments from corporate officers this earnings season to hear how much of a problem inflation is proving to be. Key earnings reports come from Walgreens Boots Alliance, Fastenal, Charles Schwab, Domino’s Pizza, Goldman Sachs,
Friday 14 October
The day kicks off with the release of Chinese inflation data in the form of CPI and PPI. Then we have final CPI updates from France, and Swiss PPI. We have Manufacturing Sales and Wholesale Sales from Canada. From the US there’s Import Prices, Consumer Sentiment, Inflation Expectations, and Business Inventories, with the highlight of the day being US Retail Sales. Earnings come from US Bancorp, JP Morgan Chase, Citigroup, PNC Financial, United Health, Wells Fargo, and Morgan Stanley.
David Morrison is an Analyst with Trade Nation. Trade Nation was set up with the specific remit to help customers realise their trading goals by changing the way they engage with the financial markets. As well as providing full transparency and making sure all customers get a fair deal, Trade Nation is fully regulated. This means customers can be confident they’re getting the trading experience they deserve. Visit www.tradenation.com to find out more
