[Screen shows “Weekly Market Outlook with Jeffrey Kleintop”]
[Jeff holds up a sign that with a drawing of a leaf and the words “Earnings Season"]
From a rush of earnings reports, to inflation falling below 2% in many countries, a likely rate cut by the European Central bank and a slew of data on China, I’m Jeff Kleintop with 90 seconds on what you need to know for the week ahead.
The third quarter earnings reporting season gets underway with 41 S&P 500 companies this week. A few standouts include A.I. chip names ASML on Wednesday and TSMC on Thursday. On Tuesday, we hear from big financials Goldman Sachs, Bank of America, and Citigroup after financials were among the top performing sectors in the third quarter.
[Jeff holds up a sign with a drawing of a percentage sign in the middle of a bullseye]
We get September CPI released in the UK, Eurozone, and Canada this week. All of them are expected by economists to come in below the 2% inflation target of their central banks—some of them for first time in over 3 years—paving the way for further rate cuts.
[Jeff holds up a sign with the drawing of a pair of scissors with the percentage sign in the middle and the word “rates” under the scissors.”]
Speaking of which, on Thursday, the European Central Bank will almost certainly reduce its main policy rate by 25 basis points. The case for action has strengthened significantly since the Governing Council last met in September. And with inflation below the ECB’s 2% target for the first time since 2021, lowering the policy rate seems likely by 25bps this week and at each meeting well into 2025.
[Jeff holds up a sign with a drawing of a back pack with the words “Back 2 School”]
Also, on Thursday, U.S. retail sales data for September are expected to show subdued growth—especially when adjusted for inflation.
[Jeff holds up sign with the drawing of a dragon and the word "CHINA"]
On Friday, we get China’s GDP, retail sales, industrial production, and home prices—all likely pointing to the need for more policy support as GDP tracks below the government’s target of 5%. While China’s policymakers have announced a number of stimulus measures in recent weeks, few details have followed and the full force of any actions may not be felt until 2025.
[Jeff holds up sign saying "Thank You"]
Thanks for watching.
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