Key international financial events this week include: The US will release September CPI data, China, Germany, Japan and other major economies will also release the previous month’s price data, while the Federal Reserve (Fed) will release the minutes of its September meeting. The week officially begins and will be led by financial giants like Citi, Morgan Stanley and JPMorgan Chase. Below are the international events this week.
US CPI data in September is estimated to drop three times in a row
After the US nonfarm payroll data was released last week, the market is concerned about the performance of Thursday’s CPI data this week. The market expects the annual CPI growth rate in September to drop to 8, 1%, down 0.2% from August Fed officials revealed that inflation is still not significant. The improvement, which is not expected to cool quickly, will maintain a strong hawkish tone and may need to continue to raise inflation. interest rates early next year.
In addition to the US, China, Germany, Japan, France and other major economies will also release CPI data.
The minutes of the Fed’s September meeting focus on inflation and recession fears
On Thursday the same day, the Fed will release the minutes of the September meeting. The US central bank’s views on inflation and recession are crucial. Jeremy Siegel, a long-term US equity market bull, warned that the Fed continues to raise interest rates too fast, and the risk of recession will be “very high”.
The US federal benchmark interest rate is currently between 3.0% and 3.25% .According to CME FedWatch data, the market expects the Fed to raise interest rates by 3 in November to 81. , 1% and the probability of 2 is less than 20%.
US equity earnings week starts with financials leading
US equity earnings week will kick off this week, led by US financials, with Wells Fargo (WFC-USA), BlackRock (BLKUS) will report earnings Thursday, JPMorgan (JPM-USA), Morgan Stanley (MS-USA), City (C-USA) Friday, together with Delta Air Lines (FROM-USA), UnitedHealth (UNH-USA) Wait.
FactSet expects US equities to report an annual earnings growth rate of 2.4% in the third quarter, the worst performance since the third quarter of 2020. The top 10 sectors of the US equity market are expected to be revised downwards.S&P 500 IndexThe 12-month forward P / E is 15.8, lower than the 5-year average PE of 18.5 and the 10-year average of 17.1.
