The Week Ahead 21-25 October 2024

The Week Ahead 21-25 October 2024

London, 20 October 2024

Major corporations like Tesla, Coca-Cola, 3M, General Motors, and Verizon will release their quarterly reports next week, marking the continuation of the earnings season. Reports on new and existing home sales, durable goods orders, and PMI releases will all be included in the US economic calendar. Investors across the Atlantic will be keenly monitoring consumer confidence data for the Euro Area, UK, France, Italy, South Korea, and Turkey, as well as Germany's IFo business climate index. Additionally, Australia, Japan, India, France, Germany, and the UK's manufacturing and services PMI statistics will be the main emphasis. Retail sales statistics and the Bank of Canada's interest rate announcement will be the focus in Canada. Lastly, South Korea will report its GDP growth rate for the third quarter.

Europe

The earnings season will continue next week with the release of quarterly reports from major companies such as Tesla, Coca-Cola, 3M, General Motors, and Verizon. The US economic schedule will include PMI releases, durable goods orders, and reports on new and existing home sales. Consumer confidence data for the Euro Area, UK, France, Italy, South Korea, and Turkey, together with Germany's IFo business climate index, will be closely watched by investors on the other side of the Atlantic. The manufacturing and services PMI data from Australia, Japan, India, France, Germany, and the UK will also be the primary focus. In Canada, the emphasis will be on retail sales data and the Bank of Canada's interest rate announcement. Finally, the GDP growth rate for the third quarter will be released by South Korea.

Nonetheless, it is anticipated that consumer sentiment would increase throughout the Euro Area, hitting its best level since February 2022. Due to continued strong inflation, the Bank of Russia is projected to raise its key rate by 100 basis points to 20%, while Hungary is expected to maintain interest rates at their current level. Germany's producer prices, EU auto registrations, UK CBI industrial trends, French and Spanish unemployment statistics, and Italian and Turkish business and consumer confidence surveys are among the other important data releases.

Americas

In the US, the first glimpse of private sector performance in October will come from flash estimates for the S&P Global PMIs. Additionally, after a flat reading in August, durable goods orders are predicted to have decreased by 0.9% in September. The final Michigan Consumer Sentiment data, new and existing home sales, and regional PMIs like the Richmond Fed Manufacturing Index, Chicago Fed National Activity Index, and Kansas Fed Manufacturing Index will also be fascinating to watch.

Additionally, a number of Fed officials are scheduled to appear. Major corporations like Tesla, Coca-Cola, 3M, General Motors, and Verizon will all be presenting their quarterly reports as the earnings season progresses. As Canadian inflation fell below the 2% target for the first time in more than three years to 1.6% in September, the Bank of Canada is anticipated to slash borrowing costs by 50 basis points, the fourth straight rate cut in America. Mid-month inflation data for Brazil and Mexico, as well as producer prices and retail sales for Canada, are also due.

Asia and Australia

Following a recent data deluge that highlighted the nation's unstable economic situation, China will enjoy a comparatively quiet week of economic disclosures. While the Ministry of Commerce is scheduled to announce new FDI flows, the People's Bank of China is expected to lower its loan prime rates in order to facilitate the implementation of its recent monetary stimulus measures. Investors in Japan look to Tokyo's October CPI as a leading indicator of the BoJ's policy direction, and new PMI data for the time frame is anticipated to indicate a little slowdown in the expansion of private sector activity.

The findings of the PMI survey will also be widely discussed in Australia and India. The third-quarter GDP, which is expected to show a modest recovery, as well as business and consumer confidence indicators for October will be the highlights of a significant data release week in South Korea. In other news, Singapore will release its CPI, Malaysia will update its third-quarter GDP and September inflation rate, New Zealand will release trade flows, and Taiwan's export orders will provide a new indicator of the crucial global chip industry. (Source: Trading Economics)