This week’s key international financial events include: the United States 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 starts, and will be led by financial giants such as Citi, Morgan Stanley, and JPMorgan Chase. The following are the international events this week.
U.S. CPI data in September is estimated to drop three times in a row
After the US non-farm payrolls data was released last week, the market is concerned about the performance of Thursday’s CPI data this week. The market expects that the annual growth rate of CPI in September will 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 have to continue raising interest rates early next year.
In addition to the United States, China, Germany, Japan, France and other large economies will also release CPI data.
Fed’s September meeting minutes focus on inflation, recession fears
The Fed will release the minutes of its September meeting on the same day on Thursday. The U.S. central bank’s views on inflation and recession are crucial. Jeremy Siegel, a long-term U.S. stock market bull, warned that the Fed continues to raise interest rates too quickly, and the risk of recession will be “extremely high” .
The U.S. federal benchmark interest rate is currently in the range of 3.0% to 3.25%. According to CME FedWatch data, the market currently expects the Fed to raise interest rates in November with a 3-point rate of 81.1% and a 2-point rate of less than 20%.
U.S. stock earnings week starts with financial stocks taking the lead
U.S. stock earnings week will kick off this week, led by U.S. financial stocks, with Wells Fargo (WFC-US), BlackRock (BLKUS) will report earnings on Thursday, JPMorgan (JPM-US),Morgan Stanley (MS-US), Citi (C-US) on Friday, along with Delta Air Lines (DAL-US), UnitedHealth (UNH-US) Wait.
FactSet expects U.S. stocks to report an annual profit growth rate of 2.4% in the third quarter, the worst performance since the third quarter of 2020. It is expected that the 10 major sectors of the U.S. stock market will be revised down.S&P 500 IndexThe forward 12-month P/E is 15.8, lower than the 5-year average PE of 18.5 and the 10-year average of 17.1.