As a blitz of central bank meetings from Australia to Britain to the US keeps investors on edge this week, markets will also face crucial inflation data and employment.
Monday kicks off with the Eurozone inflation flash estimate for October, which is expected to remain elevated at 10.2% year-on-year.
While the ECB has just carried out its second rate hike of 75 basis points (bp) to stem the pressures on prices, the authorities are desperately trying to find out if their actions are having the desired impact.
ECB board member Klaas Knot said on Sunday that the central bank’s next move in December is likely to be between 50 and 75 bps.
“We’re not even half-time yet,” Knot said in an interview with Dutch TV show Buitenhof, referring to the ECB’s fight against runaway inflation in the eurozone.
Eurozone borrowing costs jumped on Friday after stronger-than-expected inflation data in countries including France, Germany and Italy.
Factory surveys earlier this week should add to the evidence of weakening global demand.
But for global investors, the Fed meeting on Tuesday and Wednesday will take center stage along with Friday’s US jobs data.
Asian stocks edged higher on Monday on expectations that the Fed would ease its planned rate hikes after this week’s meeting. The Fed is almost ready to raise rates by 75 basis points on Wednesday.
Data from last Friday showed that US consumer spending rose more than expected in September, while underlying inflationary pressures persisted.
In a move that could deepen the global food crisis, Russia suspended its participation in a UN-brokered deal to export Black Sea grain, sending Chicago wheat futures’ prices up 5% on Monday.
Meanwhile, Luiz Inacio Lula da Silva narrowly beat President Jair Bolsonaro in a runoff election on Sunday that marked a resounding return for the left-leaning former president and the end of Brazil’s most right-wing government. for decades.
Key developments that could influence markets on Monday:
Economic data: Germany: retail sales in September, United Kingdom: mortgage loans in September, euro zone: flash CPI in October, flash GDP in the 3rd quarter.
US Economic Data: US Oct PMI Chicago