Get ready for another potentially volatile week in the markets! As investors grapple with the ongoing fight against inflation by central banks and governments, several key events will shape market movements. Here's a breakdown of the top 5 things to keep an eye on:
1. Fedspeak Frenzy
This week is packed with speeches from prominent Federal Reserve officials, including St. Louis Fed President James Bullard, Cleveland Fed President Loretta Mester, and Fed Vice Chair Lael Brainard. Investors will be on high alert for any hints regarding the possibility of a fourth consecutive 75 basis point rate hike in November.
2. Economic Data on Deck
The economic calendar offers a glimpse into the state of the U.S. economy. Reports on durable goods orders, consumer confidence, new and pending home sales are all scheduled for release. However, the highlight will be the August data on personal income and spending, scheduled for Friday. This data includes the Fed's preferred inflation gauge, the Personal Consumption Expenditures Price Index (PCE). Economists expect a slight moderation in the annualized increase of the PCE price index due to recent declines in fuel costs. However, the core PCE price gauge, excluding food and energy, is likely to show an increase.
3. Earnings Season Continues
The second-quarter earnings season rolls on with reports from major companies like Goldman Sachs and BlackRock scheduled for Monday. Investors will be keen to understand how corporate profits are faring amidst rising interest rates and inflation.
4. ECB in Focus
The European Central Bank (ECB) President Christine Lagarde is set to testify before lawmakers in Brussels on Monday. Her comments will be closely watched for any signals about the ECB's future monetary policy decisions, particularly regarding potential interest rate hikes to combat inflation in the Eurozone.
5. Chinese PMI Data
Friday will see the release of China's Purchasing Managers' Index (PMI) data, offering insights into the health of the world's second-largest economy. This data will be crucial for gauging the impact of recent COVID lockdowns and the ongoing slowdown in the Chinese property market.
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Stay informed and make informed investment decisions by following these key events throughout the week! Share your thoughts on what will move the markets the most in the comments below.