A look at the day ahead at Vidya Ranganathan’s European and Global markets
A weekend election in Japan that sent the yen to a three-month low, a tough US corporate earnings calendar, the UK budget and the fast-approaching US election make for a week of excitement.
The yen has fallen and Japanese stocks have risen after Japan’s ruling coalition lost its majority in parliament in weekend elections, raising the specter of prolonged political wrangling and more fiscal stimulus.
Markets are also anticipating that politics will make the Bank of Japan’s job more difficult, with policy normalization already hampered by a fragile economy and unstable markets. The council is expected to hold its ground at the meeting that ends Thursday.
Few economic figures were published on Monday, but next week the Eurozone’s third-quarter GDP and inflation may bring into question the European Central Bank’s austere stance.
Britain’s new Labor government will announce its first budget on Wednesday, and investors have already sold off British shares and government bonds ahead of the crisis, unsure how Chancellor of the Exchequer Rachel Reeves could possibly balance high debt levels. the commitments on public spending and the promise not to increase income taxes. .
It’s also peak season on Wall Street. This week will be the busiest week of the quarter, with over 150 companies set to release their third-quarter results.
Five of the “Magnificent Seven” US titans report: Google parent Alphabet (NASDAQ:) on October 29, Microsoft (NASDAQ:) and Facebook parent Meta Platforms (NASDAQ:) on October 30, and Apple (NASDAQ:) and Amazon (NASDAQ:) on October 31.
The series of market-sensitive events continues into the following week, with US Election Day on November 5 and the Fed’s next monetary policy decision on November 7, which could make investors increasingly tense in the coming days.
The Nov. 1 U.S. jobs report is equally crucial for investors debating whether a stronger-than-expected economy could lead to fewer Federal Reserve rate cuts than what’s already priced in.
Key developments that could impact the markets on Monday:
SPEAKERS: ECB Vice President Luis de Guindos speaks in Madrid
MERIT: Koninklijke Philips (AS:) NV
(By Vidya Ranganathan; Editing by Edmund Klamann)
