Reuters – This week, financial markets are set to be influenced by five major events, including the release of the Federal Reserve meeting minutes and China’s economic data.
On Wednesday, the Federal Reserve will release the minutes of its September meeting. Investors are highly concerned about the guidance it will provide on the direction of short-term interest rates. The minutes will give further insight into policymakers’ views on whether to continue raising interest rates. The market is widely predicting a likely pause in rate hikes in September, considering easing inflationary pressures.
The United States will also release retail sales data this week, which will provide insight into consumer spending. Additionally, several retail stocks, including Home Depot, Target, and Wal-Mart, will release their earnings reports, giving investors important insights into the state of consumer spending in the country.
China will announce a series of important economic data this week, including fixed asset investment, industrial added value, and total retail sales of consumer goods. After strong growth in the first quarter, China’s economic recovery has slowed in recent months due to weak domestic and foreign demand. The performance of the data is expected to be moderate and will be closely watched by investors.
Oil prices, which rose for the seventh consecutive week last Friday, will also be a significant factor in the financial markets this week. The International Energy Agency predicts record-breaking global oil demand and tight supply. Production cuts by Saudi Arabia and Russia are expected to significantly decrease inventories for the rest of the year, potentially pushing oil prices even higher. However, there are signs of fading momentum in the market after a sustained rally.
These five major events will likely shape the direction of financial markets this week. Investors will be closely watching the Federal Reserve meeting minutes, US retail sales data, earnings reports from retail stocks, China’s economic data, and oil price movements for further insights into the global economy and investment opportunities.