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An Overview of the Coming Week
The week ahead is set to be dominated by relevant U.S. inflation data and statements from various Federal Reserve officials. These factors will shape investor insights into potential interest rate progressions. Meanwhile, companies in the retail sector will be delivering their earnings amidst concerns about inflation and economic prospects. Additionally, inconsistencies in oil prices are anticipated to prevail. Here's a primer to get your week started.
Focus on the U.S. Inflation Data
A major point of interest on Tuesday will be the release of the U.S. consumer price data for October. This data will shed light on the Federal Reserve's measures to bring down inflation from last year's historically high levels. Monthly inflation is projected to have increased by 0.1%. Although September's Consumer Price Index (CPI) increased by 0.4% due to a sudden spike in rent costs, there was a decrease in the core inflation rates.
Any significant decrease could provoke considerations about reaching the peak rate. These considerations will be fueled by the October employment report, which indicated an easing labor market. In addition, October's producer price data and retail sales figures will be released, the latter expected to show a downturn after a series of ongoing monthly increments. Other publications include data on industrial production, housing starts, and initial jobless claims.
Views from Federal Reserve Officials
The week also provides an opportunity for investors to hear from several Federal Reserve officials, including New York Fed President John Williams, Chicago Fed President Austan Goolsbee, Governor Philip Jefferson, and Governor Michael Barr. These policymakers will be contemplating any additional tightening measures before their next gathering on December 12-13.
Retail Earnings in the Spotlight
The third-quarter earning season is nearing its end, but major retailers are scheduled to report their earnings in the upcoming week. Observations of consumer expenditure will be eagerly anticipated. Reports from Home Depot, Target, Walmart, and Macy's will be among the notable ones this week, presenting investment insights into consumer spending patterns.
Potential U.S. Government Shutdown
There lies an impending shutdown risk for the federal government in case lawmakers fail to pass a last-minute funding measure for operations before Friday. Wrangles continue to raise concerns about the biggest economy's governance.
Fluctuations in Oil Prices
Oil prices witnessed a 2% uptick on Friday. Nevertheless, the global demand outlook's uncertainties counterbalanced fears about potential production disruptions due to tension in the Middle East. Traders will be anticipating a meeting between the Organization of Petroleum Exporting Countries and its allies, including Russia, on November 26, as analysts predict further supply cuts if prices continue to drop.
