Top 5 Market Trends to Follow in the Upcoming Week
A key measure of Inflation alongside comments from Federal Reserve officials will be closely monitored by investors following last week’s significant rate cut. PMI data will offer fresh insights into the Global Economy‘s strength as gold prices continue their upward trend. Here’s a preview of what to expect in the upcoming week.
The Fed’s preferred Inflation gauge is set to be released on Friday, revealing whether price pressures have continued to ease despite the Central bank‘s recent shift away from tight monetary policies aimed at cooling the economy. Economists anticipate a 2.5% year-over-year increase in the personal consumption expenditures (PCE) price index for August. The Fed’s latest projections foresee the index declining to 2.3% by year-end and 2.1% by 2025.
In addition to the Inflation data, the economic calendar for the week ahead includes final second-quarter GDP figures, reports on consumer confidence, housing, and manufacturing, as well as weekly jobless claims.
Following the rate cut, remarks from Fed officials in the coming days will provide further insights into the decision-making process. Various Fed officials, including Atlanta Fed President Raphael Bostic and Chicago Fed President Charles Evans, are scheduled to speak throughout the week. Fed Governor Michelle Bowman, who dissented from the recent rate cut, will explain her rationale for the decision.
Market volatility may increase as investor focus shifts to the latest economic data and the upcoming U.S. presidential election, where polls show a close race between Donald Trump and Kamala Harris. The stock market achieved a new all-time high last week, driven by the Fed’s rate cut and optimism around a “soft landing” for the economy.
Flash PMI data releases starting Monday will provide updated insights into the Global Economy‘s performance. While the euro area and UK economies have shown signs of resilience, concerns remain about Germany’s economic contraction and China’s growth slowdown.
Gold prices continue to surge, reaching new record highs amid monetary easing measures and geopolitical uncertainties. Analysts predict gold prices could reach $3,000 per ounce by mid-2025, driven by low Interest rates and strong demand from investors.
Overall, investors will closely monitor Inflation data, Fedspeak, market volatility, PMI releases, and gold prices in the week ahead for potential market-moving developments.
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Emma Collins, graduated in Financial Economics from the University of Chicago in the USA in 2016. She has since worked at an asset management firm in New York, where she specializes in investment strategies and portfolio management. Emma has a keen interest in financial analysis and has published several articles in renowned financial journals. Her work focuses on providing actionable insights to investors, and she is known for her forward-thinking approach to managing financial portfolios.