Week Ahead – Nov 5th

In the United States, the week will be marked by speeches by several Federal Reserve officials, the release of the Michigan Consumer Sentiment index, and foreign trade data. Also, the earnings season will continue, featuring reports from prominent companies such as Berkshire Hathaway, Gilead Sciences, Uber, and Walt Disney. Across the Pacific, China will focus on inflation rates, new yuan loans, and foreign trade data. Additionally, the Reserve Bank of Australia will make a crucial interest rate decision, and inflation rates from countries like Brazil, Mexico, the Philippines, and Russia will be under scrutiny. Meanwhile, the United Kingdom, the Philippines, and Indonesia will release their Q3 GDP growth rates. Spain, Italy, Brazil, and Canada will share service PMIs, and Germany will provide updates on factory orders and industrial production.

Next week, investors will eagerly await the release of updated earnings results from key companies, including Berkshire Hathaway, Activision Blizzard, Viatris, Gilead Sciences, Lucid Group, Uber, Twilio, Unity Software, The Walt Disney Co, Take-Two Interactive Software, AMC Entertainment, Fiverr International, and Illumina. Additionally, remarks from US policymakers, including Fed Chair Powell, will take center stage as investors seek insights into the future direction of monetary policy. Meanwhile, the economic calendar is relatively light, with preliminary estimate of Michigan consumer sentiment for November, foreign trade figures, IBD/TIPP economic optimism index, and the weekly jobless claims report. US consumer sentiment is expected to remain at October’s five-month low, while the trade deficit likely widened to $60.2 billion in September from $58.3 billion in August. Elsewhere in America, investors will be keeping a close eye on updated data concerning Canada’s Ivey PMI and trade balance, Mexico’s inflation rate, consumer morale, and Brazil’s CPI, business survey, retail trade statistics, and S&P Global Services PMI.

The United Kingdom is set to release its preliminary estimate of third-quarter GDP growth, along with reports on industrial production, foreign trade, and construction output. UK’s economy likely contracted in Q3, marking a reversal from three consecutive quarters of growth. Elsewhere in Europe, retail sales in the Euro Area are anticipated to decline for the third consecutive month in September. Germany’s factory orders are also forecasted to decrease, and industrial activity in Italy is expected to follow suit. Other data to watch for includes Services and Construction PMIs, final inflation figures for Germany, France’s trade balance, Russia’s inflation rate, Switzerland’s unemployment rate, and Turkey’s foreign trade data, industrial activity, and unemployment rate.

In China, all eyes will be on October’s trade data and inflation figures for further insights on the impact of economic stimulus from the government after PMI data pointed to unexpected contractions. Also, new yuan loans for the period will shed light on the effect of looser lending rules from the PBoC. In Japan, investors await the Tankan index for November and September’s current account, while follow-up documents from the BoJ’s latest policy decision will shed light on the bank’s choice to tweak to its yield curve control policy. Elsewhere, Indonesia, Malaysia, and the Philippines will unveil third-quarter GDP figures, while India will divulge industrial production for September.

In Australia, the RBA is expected to resume its hiking cycle after four consecutive holds at 4.1%, reacting to recent upticks in monthly inflation gauges.