Latest News

Top 5 Things to Watch in Markets in the Week Ahead


Top 5 Things to Watch in Markets in the Week Ahead By

Breaking News


Economy 7 minutes ago (Nov 06, 2022 11:00)

© Reuters

By Noreen Burke — U.S. inflation data on Thursday could bring some insight into when the Federal Reserve might start to slow the pace of rate hikes. The outcome of the U.S. midterm elections on Tuesday, where control of Congress is at stake will also be in focus. China is to release trade and inflation data as Beijing’s zero-COVID policy continues to wreak economic damage. Meanwhile, the U.K. is to release GDP data on Friday which is expected to show the economy has entered a recession. Here’s what you need to know to start your week.

U.S. inflation data

The U.S. is to release inflation figures for October on Thursday with market watchers on the lookout for indications that price pressures are cooling after a barrage of outsize rate hikes by the Fed.

Fed Chairman Jerome Powell said last week that policymakers will likely take rates higher than envisioned in their attempt to curb soaring inflation, so a hotter-than-expected reading would likely cement expectations for the Fed to continue its hawkish path.

But a cooler-than-expected reading could see markets become more focused on the higher probability of a recession.

Economists are expecting the annual rate of inflation to come in at 8.0% and the monthly rate of inflation to rise by 0.7%.

U.S. midterm elections

The U.S. is gearing up for midterm elections on Tuesday where control of Congress and President Joe Biden’s agenda for the remaining two years of his term are at stake.

Republicans have been leading in polls and many analysts believe the likely result will be a split government, with GOP control of the House of Representatives and possibly the Senate for the second half of Biden’s term.

Democrats’ electoral hopes have been hammered by voter concerns about high inflation, and Biden’s public approval rating has remained below 50% for more than a year, coming in at 40% in a recent Reuters/Ipsos poll.


Wall Street rebounded on Friday to close out a soft week, but the struggling equities rally will be tested in the coming days by the double-whammy of inflation data and U.S. midterms.

Despite Friday’s gains, the Dow fell 1.39% for the week to snap a four-week winning streak, the S&P 500 shed 3.34% for the week and the Nasdaq fell 5.65%, its largest weekly percentage decline since January.

Inflation data has driven huge market moves this year, as persistently high readings forced investors to ramp up expectations for Fed rate hikes.

Analysts said a surprise win by Democrats could fuel concerns about more fiscal spending and the inflation outlook.

According to Reuters data, U.S. stocks have performed better in periods of divided government, with average annual S&P 500 returns of 14% in a split Congress and 13% in a Republican-held Congress under a Democratic president, compared with 10% when Democrats controlled both presidency and Congress.

China data

Chinese and Hong Kong stocks jumped sharply on Friday amid speculation that Beijing may soon ease its strict zero-COVID curbs, but officials said Saturday that the country was sticking to its policy.

China is to release data on trade, inflation and new loans in the coming week which are expected to point to ongoing weakness in the world’s second largest economy as COVID curbs sap demand.

Beijing is also due to release data on foreign exchange reserves, which are being depleted as authorities seek to shore up the yuan which is on track for its worst year since 1994.

Down for eight months in a row, China’s foreign currency reserves are within a whisker of the psychological $3 trillion level amid broad-based dollar strength since the Fed began raising rates in March.


The U.K. is to release preliminary data on third-quarter growth on Friday, which is expected to show that the economy contracted 0.5% in the three months to September.

Last Thursday the Bank of England hiked interest rates sharply as it sought to combat risks from an inflation rate running above 10% and warned of a long recession.

The BoE forecasts inflation will hit a 40-year high of around 11% during the current quarter, but that Britain has already entered a recession that could potentially last two years – longer than during the 2008-09 financial crisis.

–Reuters contributed to this report

Top 5 Things to Watch in Markets in the Week Ahead

Musk’s Twitter updates app to start charging $8 for blue checkmarkBy Reuters – Nov 05, 2022

By Rhea Binoy (Reuters) -Twitter on Saturday updated its app in Apple (NASDAQ:AAPL)’s App Store to begin charging $8 for sought-after blue check verification marks, in Elon Musk’s…

Buffett’s Berkshire loses money as stocks, Hurricane Ian offset rising demandBy Reuters – Nov 05, 2022

By Jonathan Stempel (Reuters) – Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) Inc on Saturday posted a $2.69 billion third-quarter loss as rising inflation, falling stock…

Malaysian leaders kick off election campaigns in tight raceBy Reuters – Nov 05, 2022

By A. Ananthalakshmi and Rozanna Latiff KUALA LUMPUR (Reuters) – Malaysian political leaders began their election campaigning on Saturday for what is set to be a close race, with…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Single millennials are going into debt because of expensive dating habits — and some have had their cards declined on a first date. Here are 3 simple ‘cheap date’ ideas

Previous article

GBP/USD Forecast: Weekly Forecast 6th – 12th November – 06 November 2022

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News