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This week’s U.S. Inflation data for September will be closely watched following the strong jobs report that eased concerns about a weakening economy. The Federal Reserve will release the minutes of its September meeting, marking the start of earnings season, while oil prices are expected to remain volatile due to geopolitical tensions. Here’s a preview of what to expect in the markets for the upcoming week.
1. U.S. CPI
Thursday’s data for September is anticipated to show a continued moderation in price pressures at the end of the third quarter. The upcoming jobs report is also expected to indicate subdued Inflation, reassuring the Fed that Inflation is moving towards its 2% target. The possibility of the Fed skipping the November meeting will increase if prices rise faster than expected following the robust labor data from Friday.
2. Fed minutes
The release of the Fed’s September meeting minutes on Wednesday will provide insights into the Central bank‘s thinking on the pace of easing moving forward. Investors will be looking for clues on the factors that led to the consensus on a 50bps rate cut. Several Fed officials, including Neel Kashkari, Raphael Bostic, Adriana Kugler, and Lorie Logan, will also be speaking during the week.
3. Earnings get underway
Third-quarter earnings season is set to begin, with major financial firms like JPMorgan Chase, Wells Fargo, and BlackRock reporting on Friday. These results will offer a glimpse into the economy’s strength and the impact of the Fed’s rate cut on consumer behavior. Other companies reporting earnings include PepsiCo and Delta Air Lines.
4. Oil prices
Oil prices saw their biggest weekly gains in over a year due to escalating tensions in the Middle East. However, gains were limited as U.S. President Joe Biden discouraged targeting Iranian oil facilities. The threat of a broader war in the region could impact oil prices, with Iran being a key player in global oil production.
5. RBNZ
The Reserve Bank of New Zealand meets on Wednesday, with expectations of a potential rate cut following the Fed’s lead. The Central bank had already lowered rates in August and aims to deliver two more cuts by Christmas. The Reserve Bank of Australia will also release the minutes of its September meeting, providing insights into its policy stance. RBA Deputy Governor Andrew Hauser is scheduled to speak on the same day.
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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.