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

Investing.com – U.S. earnings season is about to begin, amid fears that the Federal Reserve’s aggressive rate hikes could tip the economy into recession. Investors will get an update on the U.S. housing market, where rising borrowing costs have cooled demand. The presence of several Fed officials was also on the agenda. In the UK, Jeremy Hunt will be in his first full week as prime minister after Liz Truss was forced to sack his predecessor. Elsewhere, third-quarter economic data from China could highlight the challenges facing the world’s second-largest economy, while Japan refocused on yen intervention. Here’s what you need to know to start your new week.

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The third-quarter earnings season is about to begin, with companies reporting results in a challenging environment due to a strong dollar and persistently high inflation.

Reuters reports,

Standard & Poor’s 32 The company as a whole is expected to increase over the same period last year 4.1%, which would be the slowest growth since the fourth quarter 42. But more of the focus may be on how executives plan for the future; analysts generally estimate profits to rise nearly 8% next year, according to Refinitiv IBES data, but with recession risks looming, many Investors were skeptical of the forecast.

The market sell-off has lowered stock valuations, but a downgrade in the earnings outlook could make the stock less attractive. Companies that will report earnings next week include Tesla (NASDAQ:

TSLA

), Netflix (NASDAQ:

NFLX) and Johnson & Johnson (NYSE:

JNJ ).

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1000 US Housing Data 20221000 166 The focus of last week’s better-than-expected U.S. inflation data will turn to the housing market, the report will be 13994 Building Permit , 1000 Housing starts and 200 Existing Home Sales . House prices fell for the first time
, mortgage applications also fell in July as rising interest rates hit housing demand. The Economic Calendar also includes about 2020 Industrial production , Philadelphia Fed Manufacturing Index, 1000Imperial State​​ Manufacturing Index, and 2022 Initial Jobless Claims . Regional Fed President Neal 166 Kashkari , Charles Evans

and James 166 Bullard

will also make a look that is going to happen closely. On Saturday, Bullard said last week’s CPI data showed that inflation had turned “harmful” and that it was raised interest rates at the Fed’s upcoming November and December meetings, but added that it was too early to make such a decision. 166

2020 UK trying to restore calm
166 Battered U.K. government bonds will resume trading Monday without support from the Bank of England’s emergency bond-buying program, which ended on Friday. UK’s new prime minister Jeremy Hunt says will fix the country’s public finances after Liz Truss and former prime minister Kwasi Kwarteng’s original economic plan roiled financial markets after. There are reports that the government is preparing a U-turn plan for tax cuts to help ease concerns about public finances, but this needs to be implemented into concrete planned to avoid another sell-off in bonds.
Investors will also be eyeing the UK on Wednesday 1000 September inflation figures, which are expected to hit double digits amid a tightening cost of living, while 13063 Retail Sales Friday’s data is expected to show a decline in consumer spending. 52 1000

Chinese data 1000
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China is due to release third-quarter GDP data on Tuesday, and while growth is expected to rebound from the previous quarter, the economy is still on track for the slowest annual growth Rate close year. The annual growth rate is expected to pick up 523.4%

in the three months to September, up from 0.4% in the second quarter. Strict COVID- Containment measures, supply chain disruptions caused by the war in Ukraine, and a sharp increase in borrowing costs to curb inflation have led to a slowdown in global growth that has hit the world’s second-largest economy. pressure. Analysts expect China’s economy to grow in

up 3.2%, well below the official target of around 5.5%. Investors will be looking to the week-long Communist Party Congress, which begins Sunday, for any signs of economic policy.

50 81778177 Yen intervention? 10001000 8177 Forex traders will pay close attention 1000JPY Market speculation that the Bank of Japan may take new measures to boost the yen after intervening in the market for the first time since last month 75.

Bank of Japan Deputy Governor Masaru Wakatabe said on Saturday that the yen’s recent volatility has been “clearly too fast and too sideways,” pointing to concerns that the currency slump could have an impact on the economy – yearly low against the dollar.

Japan intervened in the foreign exchange market in September to prevent the yen from falling sharply, mainly due to the gap between the Federal Reserve and the Fed’s sharp interest rate hikes The Bank of Japan’s ultra-easy monetary policy is aimed at achieving its 2% inflation target. Japan is an outlier among global central banks, many of which are raising interest rates to combat blistering inflation as it focuses on supporting fragile Economic recovery. — Reuters contributed to this export