Company / Analytics

Analytics, 23 October 2023

What will drive the markets this week?

On Friday, Wall Street concluded the week on a downbeat note, with investors reflecting on a week characterized by a mix of corporate earnings, cautionary remarks regarding potential interest rate hikes by the Federal Reserve, and concerns about escalating conflicts in the Middle East.

Meanwhile, European markets extended their downward trajectory, wrapping up the week at their lowest levels in seven months. This decline was spurred by mounting tensions in the Middle East, rising interest rates, and disappointing corporate earnings, which collectively subdued investor appetite for risk.

In the Asia-Pacific region, markets also witnessed a decline on Friday, building upon the broad sell-off experienced the previous day. Investors in Asia will closely analyze Japan’s September inflation data, which registered at 3%, marking the 18th consecutive month above the Bank of Japan’s 2% target. Additionally, attention will be on China’s one-year and five-year loan prime rates.

This week promises to be eventful as numerous corporations are scheduled to release their earnings reports. Major tech giants, including Microsoft, Meta Platforms, Amazon, and Google-parent Alphabet, are among the companies set to disclose their financial results. Other notable firms such as Visa, Mastercard, Verizon, Boeing, GE, Ford, General Motors, Spotify, Snap, IBM, Intel, ExxonMobil, and Chevron will also provide updates on their earnings.

Later in the week, on Thursday, the advance estimate for the third-quarter gross domestic product (GDP) will be unveiled, accompanied by the release of the Personal Consumption Expenditures (PCE) Price Index—an inflation measure favored by the Federal Reserve—on Friday. The housing market will also come into focus, with reports on new and pending home sales for the month of September.

Events expected to move the markets this week

Monday, Oct. 23

Tuesday, Oct. 24

Wednesday, Oct. 25

Thursday, Oct. 26

Friday, Oct. 27

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