What will drive the markets this week?
In the past week, the U.S. stock market saw a notable decrease in value, primarily driven by a decline in chipmaker stocks due to concerns about weakened consumer demand. Additionally, the increasing Treasury yields put pressure on large-cap growth companies like Amazon.
Meanwhile, European equities had a positive week with gains, fueled by stronger-than-expected economic data from China, which particularly benefited luxury goods companies. Investors were also encouraged by signs that the European Central Bank (ECB) was approaching the end of its interest rate hikes. The pan-European STOXX 600 index closed 0.2% higher, reaching a five-week high. Notable gains were observed in sectors such as luxury, mining, and automobiles.
In the Asia-Pacific region, markets experienced widespread gains, driven by positive economic indicators from China for August, surpassing market expectations. China reported stronger retail sales and factory output, though fixed asset investment fell slightly short of expectations, and home prices declined by 0.1% compared to the previous year.
This week, the focus will be on monetary policy, with Federal Reserve policymakers gathering for the upcoming Federal Open Market Committee (FOMC) meeting scheduled for Tuesday. The market anticipates an announcement regarding their interest rate decision on Wednesday. Additionally, the Bank of England (BoE) will hold its own policy meeting on Thursday.
We can also expect fresh insights into the housing market, including data on building permits, housing starts, and existing home sales for the month of August, along with the National Association of Home Builders’ (NAHB) Housing Market Index for September. Furthermore, this week will feature earnings reports from notable companies such as FedEx, AutoZone, and General Mills.
Events expected to move the markets this week
Monday, September 18
- NAHB Housing Market Index (Sep)
Tuesday, September 19
- AutoZone (AZO), Endava PLC (DAVA), and Apogee Enterprises Inc. (APOG) report earnings
- Building Permits (Aug)
- Housing Starts (Aug)
- Day 1 of FOMC Meeting
Wednesday, September 20
- FedEx Corp. (FDX), General Mills (GIS), and KB Home (KBH) report earnings
- Day 2 of FOMC Meeting; Interest Rate Decision and Press Conference
- U.K. Inflation Rate (Aug)
Thursday, September 21
- Darden Restaurants (DRI) and FactSet Research Systems Inc. (FDS) report earnings
- U.S. Current Account (Q2 2023)
- Philadelphia Fed Manufacturing Index (Sep)
- CB Leading Economic Index (Aug)
- Existing Home Sales (Aug)
- Japan Inflation Rate (Aug)
- Bank of England (BoE) Interest Rate Decision
Friday, September 22
- S&P Global Composite PMI - Flash Estimate (Sep)