QUESTION:
Give me a comprehensive market update for this week
RESPONSE:
This week in the financial markets is marked by several key events and data releases that are likely to influence investor sentiment and market movements:
1. Earnings Season Commencement: The earnings reporting season is starting this week, and the expectations from investors are not very high[1].
2. Economic Stimulus in China: After a significant rally, China is set to detail its economic stimulus plans. The National Development and Reform Commission will hold a news briefing to discuss these plans as the mainland markets reopen following the Golden Week public holiday[2].
3. US Jobs Market Data: The US jobs market has recently given traders a reality check, which could influence market dynamics and expectations around the Federal Reserve’s future decisions[3].
4. Federal Reserve Developments:
– The minutes from the last Federal Reserve Open Market Committee (FOMC) meeting are scheduled to be released this Wednesday. These minutes are crucial for understanding the Fed’s current economic outlook and future policy directions[4].
– The futures market has adjusted its expectations regarding rate cuts, with a significant percentage now betting that the Fed might not cut rates at all in its November meeting[5][6].
5. Inflation and Economic Data:
– This week, key economic indicators will be released, including consumer prices, wholesale inflation data, and consumer sentiment updates. These reports are crucial for gauging inflationary pressures and their potential impact on future monetary policy[7][8][9].
– Specifically, the U.S. inflation report due on Thursday is anticipated to be a significant market mover, given its implications for interest rate policies[10].
6. Global Market Movements:
– Hong Kong shares have seen a plunge as economic rescue plans from Beijing did not meet market expectations, despite previous strong gains[11].
– European markets are expected to open in mixed territory, with investors eyeing the Federal Reserve minutes, U.S. inflation data, and economic growth figures from the U.K.[12].
7. Geopolitical Concerns and Market Sentiment:
– Geopolitical tensions, particularly in the Middle East, and potential energy supply disruptions continue to pose risks to market stability. However, the sentiment at the start of the week has been cautiously optimistic about further upside potential[13].
This comprehensive overview encapsulates the major themes and events influencing the markets this week, providing a broad context for financial professionals to consider in their strategies and decision-making processes.
References
[1] Earnings reporting season starts this week and investors don’t expect it to be great [CNBC]
Earnings reporting season starts this week and investors don’t expect it to be great [CNBC] https://www.cnbc.com/2024/10/08/earnings-season-for-q3-starting-this-week-isnt-expected-to-be-great.html
[2] China To Flesh Out Economic Stimulus Plans After Bumper Rally [Barron’s]
And with all eyes on the reopening of mainland markets following the Golden Week public holiday, officials from the National Development and Reform Commission will hold a news briefing at 10 am (0200 GMT) Tuesday. https://www.barrons.com/news/china-to-flesh-out-economic-stimulus-plans-after-bumper-rally-83eb4453
[3] Markets in 3 Minutes: Traders Get Reality Check from US Jobs [Bloomberg View]
Markets in 3 Minutes: Traders Get Reality Check from US Jobs https://www.bloomberg.com/news/videos/2024-10-07/traders-get-reality-check-from-us-jobs-3-minute-mliv-video
[4] Earnings Kickoff And World Conflicts Highlight The Week [Forbes]
Fed members will be speaking throughout the week but what I think will be most interesting is the release of minutes from the last Federal Reserve Open Market Committee (FOMC) meeting, due out Wednesday. https://www.forbes.com/sites/jjkinahan/2024/10/07/earnings-kickoff-and-world-conflicts-highlight-the-week
[5] CNBC Daily Open: Fear is the stock killer [CNBC]
And September’s blockbuster jobs report, the futures market is pricing in a 13.7% chance the Fed will not cut rates at all at its November meeting. https://www.cnbc.com/2024/10/08/cnbc-daily-open-fear-is-the-stock-killer.html
[6] CNBC Daily Open: U.S. economy’s fine, but markets driven by fear [CNBC]
And September’s blockbuster jobs report, the futures market is pricing in a 14.2% chance the Fed will not cut rates at all at its November meeting. https://www.cnbc.com/2024/10/08/cnbc-daily-open-us-economys-fine-but-markets-driven-by-fear.html
[7] This week: Consumer prices report, wholesale inflation data, consumer sentiment update
A look at some of the key business events and economic indicators upcoming this week.
[8] This week: Consumer prices report, wholesale inflation data, consumer sentiment update
This week: Consumer prices report, wholesale inflation data, consumer sentiment update
[9] Dollar holds on to 7-week highs as traders consider U.S. rates outlook [CNBC]
Investor focus this week will be on the inflation report due on Thursday as well as the minutes of the Federal Reserve’ s September meeting scheduled to be released on Wednesday. https://www.cnbc.com/2024/10/08/dollar-holds-on-to-7-week-highs-as-traders-consider-us-rates-outlook.html
[10] Here’s why this week’s inflation report could be a big market mover [CNBC]
Here’s why this week’s inflation report could be a big market mover [CNBC] https://www.cnbc.com/2024/10/07/heres-why-this-weeks-inflation-report-could-be-a-big-market-mover.html
[11] Stock market today: Hong Kong shares plunge as economic rescue plans from Beijing fall flat
Hong Kong shares had logged strong gains over the past week while markets in mainland China were closed for a weeklong holiday.
[12] European markets set to open in mixed territory as uncertainty spreads [CNBC]
Key releases for markets this week include U.S. Federal Reserve minutes and German trade on Wednesday, U.S. inflation on Thursday and U.K. economic growth on Friday. https://www.cnbc.com/2024/10/08/europe-markets-live-updates-stocks-news-data-and-earnings.html
[13] Dollar on a roll after U.S. jobs data and Middle East flare-up [CNBC]
“While geopolitical headlines and the possibility of an energy supply shock remain a continued threat to sentiment, those set long of risk haven’t heard anything significantly market moving through the weekend and head into the new trading week feeling pretty good about the prospect of further upside.” https://www.cnbc.com/2024/10/07/dollar-on-a-roll-after-us-jobs-data-and-middle-east-flare-up.html
