Investors face a pivotal week as they assess key economic indicators and central bank decisions that will shape the market outlook for the final quarter of 2024. The focus will be on inflation metrics, particularly the US Consumer Price Index (CPI), which is anticipated to provide insights into price stability and consumer spending patterns. Additionally, central banks around the world, including the Reserve Bank of New Zealand, the Reserve Bank of India, and the Bank of Korea, will be making important interest rate decisions that could have ripple effects across markets.
Monday, 7th October:
German Factory Orders (August): This data will provide insights into manufacturing sector trends in Europe's largest economy, potentially influencing ECB policy decisions.
UK Halifax House Price Index (September): This index offers a glimpse into the UK housing market, an important indicator of overall economic health and consumer confidence.
Eurozone Retail Sales (August): This will provide an overview of consumer spending trends in the Eurozone, which can impact economic growth projections.
Tuesday, 8th October:
UK BRC Retail Sales Monitor YoY (September): This key indicator provides insights into UK consumer spending trends.
Japan Current Account (August): This data will provide insights into Japan's trade balance and financial flows, impacting currency valuations.
Germany Industrial Production (August): This is a key indicator of industrial activity in Germany, relevant for assessing the Eurozone's economic health.
Wednesday, 9th October:
New Zealand RBNZ Interest Rate Decision: Markets will watch for any policy changes or forward guidance from the Reserve Bank of New Zealand.
India RBI Interest Rate Decision: The Reserve Bank of India's decision will be closely monitored for its impact on regional monetary policy trends.
US FOMC Meeting Minutes (September): The minutes will offer detailed insights into the Federal Reserve's September meeting discussions and policy considerations.
Thursday, 10th October:
Japan Producer Price Index (September): An indicator of inflationary pressures at the wholesale level in Japan.
US Consumer Price Index (September): A crucial inflation indicator that could significantly influence Fed policy expectations. Markets anticipate further easing of inflation, in line with recent trends.
Friday, 11th October:
South Korea BoK Interest Rate Decision: The Bank of Korea's decision will be closely watched for its impact on regional monetary policy trends.
UK Monthly GDP, Manufacturing, Services, and Construction Output (August): Provides a comprehensive view of the UK's economic performance across key sectors.
US Producer Price Index (September): This key inflation indicator measures price changes from the perspective of producers, and will be closely watched for signs of inflationary pressures.
This week presents a packed economic calendar with several high-impact events including the US CPI data on Thursday, and central bank decisions in New Zealand and India on Wednesday, and South Korea on Friday. As markets prepare for these pivotal events, investors should remain vigilant for potential volatility, especially as policymakers navigate the delicate balance between fostering growth and controlling inflation. Consequently, this week promises to be a significant one for shaping economic narratives as we move deeper into Q4 2024.