Top 5 things to watch in the market in the coming week

by Noreen Burke Investing.com – – For a week, with Investors will brace for fresh volatility in the week ahead as central banks and governments ramp up their efforts to fight inflation and financial markets roil. Several Fed officials are about to speak for the third time in a row t 50 bps hike with no sign of easing in sight. The highlight of the U.S. economic calendar will be Friday’s personal income and spending data, which includes the Fed’s favored measure of inflation. In the euro zone, Friday’s inflation data could put pressure on the ECB. Before that, ECB President Christine Lagarde will testify before lawmakers in Brussels on Monday, while the result of Sunday’s election in Italy will also be closely watched. The yen will remain in focus after the Bank of Japan intervenes in the foreign exchange market. Meanwhile, Friday’s Chinese PMI data will give us an insight into the health of the world’s second-largest economy. Here’s what you need to know to start your new week.

400 Fedspeak, US data 19989536 166 stone. St. Louis Fed President James 169 Bullard , Cleveland Fed President Loretta Master , Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Fed Vice Chairman Lyle 1000 Brainard both speaking this week, investors stay alert for instructions Is it the fourth time in a row 50 bps 2023 rate hike
Open November card. European Commission Economic Calendar Functional Report 2023 Durable Goods Orders

, 500 Consumer Confidence , together with data on new of

and

for sale houses. The highlight of the economic calendar will be August data Personal Income

and 1998expenditure Friday, which includes the personal consumption expenditures price index, the Fed’s preferred measure of inflation. The annualized growth rate projected by economists

PCE Price Index slowed by the recent drop in fuel costs, but 2023 Core PCE Price List Excluding food and energy is expected to increase. 20232023 Stock sell-off

200 Wall Street’s major indexes were hit hard last week with 400 Nasdaq

down 5. % – Down over 5% for the second week in a row – and1998 Standard & Poor’s 50 end 4. 62% and2023 Dow

fell 4%. The Dow narrowly avoided joining the S&P 50 and the Nasdaq in a bear market. rout As investors readjust their portfolios to a world of persistent inflation and rising interest rates, bond markets have increased their appetite for stocks pressure. 1000 The Fed said last week that it expects high interest rates in the US to continue until

.

While recent data show the U.S. economy remains relatively strong, investors are concerned that the Fed’s tightening policies will tip the economy into recession. Ed Moya, senior market analyst at OANDA, told Reuters on Friday, “We’re getting everyone to reassess how far the Fed is going to go, It’s a nuisance for the economy.”

“This is going to be the base case for a hard landing of the economy, which is a bad environment for U.S. stocks. “

In addition to the tightening of global financial conditions, market sentiment has been hit hard by a host of other issues such as the conflict in Ukraine, the energy crisis in Europe and the United States COVID-19 in China break out. 10002023 Eurozone CPI 200 1998 The Eurozone will be in

released September data Consumer Price Inflation

On Friday, economists expected headline inflation to accelerate to a record 9.6 percent, giving the European Central Bank a boost pressure as it grapples with a looming recession by how much it will raise interest rates. Ahead of that, ECB President Christine Lagarde will speak at Economic and Monetary Affairs in Brussels on Monday When she testifies before the committee, she may face the following problem: The central bank plans to fight inflation at a time when the EU faces the prospect of a recession.

Investors will also pay attention to the results of

Italian General Election on Sunday, is expected to lead to the country’s most right-wing government since World War II. EU leaders keen to preserve unity after Russia’s invasion of Ukraine fear Italy will be a more unpredictable partner, while financial markets Will be concerned about the ability of the new government to manage the debt burden, approximately 69 as a percentage of GDP. 169

1000 Yen Intervention 1000
1976 Japanese authorities finally had enough of a weak yen on Thursday, At that time they 1976 Intervention in the foreign exchange market
since

for the first time .

This

Japanese currency against the doll for over a week It rose 0.3% for the first time to follow the action. but the dollar rose more than Yen/yen as a percent this year, the Bank of Japan is sticking to its promise of ultra-low interest rates, and the Fed appears set to continue raising rates sharply until inflation is contained. So the case for a strong dollar remains. Japan, as well as neighbors China and South Korea, are also pushing down the dollar and could find themselves battling fundamentals, markets and the Fed.
1000 Bank of Japan Governor Kuroda Haruhiko

will speak on Monday, where he is expected to gain further insight into Japan’s decision to intervene. 169

China Purchasing Managers Index 20201000 500 China to release 169 Friday’s PMI

data will be closely watched for signs of whether the early days of the economic recovery continue in September. Recent economic data showed a recovery in August, with faster-than-expected factory output and retail sales underpinning a fragile recovery, but the housing market The deepening decline weighed on the outlook.

There are few signs that China will significantly ease its zero outbreak policy anytime soon, with some analysts predicting the world’s No. The two largest economies will only grow by 3% this year, which will be the largest since 77, not included in 72.

China has announced broad economic support measures since late May, but 1000 RMB against USD complicating the situation with looser monetary support. — Reuters contributed to this report