Global markets face a busy week, with the US Federal Reserve’s interest rate decision, US inflation data and results from major technology companies expected to influence trading.
The Fed is due to announce its decision on Wednesday 28 October. Markets are widely expecting interest rates to remain unchanged, with investors looking for guidance on inflation and the possibility of further rate increases in December.
A more hawkish message could put pressure on gold and other assets sensitive to interest rate expectations. Gold has recently fallen towards the $4,000 an ounce level, making the Fed’s comments a key focus for precious metals markets.
US personal consumption expenditures (PCE) inflation data is due on Thursday 29 October. Headline PCE inflation is forecast to rise to 3.6% year on year from 3.4%, while core PCE inflation is expected to increase to 3.1% from 3%. The figures will provide further insight into price pressures after the Fed’s announcement.
Technology earnings are another major focus. Microsoft and Alphabet are scheduled to report on Wednesday, followed by Amazon on Thursday. Microsoft’s results will be closely watched for revenue growth and spending on artificial intelligence infrastructure.
Microsoft is expected to report first-quarter earnings per share of $4.72, up 14.3% year on year, with revenue forecast to increase 16.8% to $90.1bn. Its capital expenditure is also expected to rise, reflecting continued investment in infrastructure.
The UK Autumn Budget on Wednesday will add another event for markets to assess, while the European Central Bank is scheduled to announce its interest rate decision on Thursday. Investors will also monitor economic data and company results throughout the week.
CMC Markets plc (LON:CMCX) is a UK-based financial services company that offers online trading in shares, spread betting, contracts for difference and foreign exchange across world markets.
