Wednesday will see a fresh wave of earnings reports from major US banks, with Bank of America and Morgan Stanley set to release their quarterly results. BlackRock will also report its earnings, adding to the financial sector's activity.
In the UK, investors will review updates from Ashmore on its first-quarter assets under management, Softcat's full-year results, and a Q3 trading update from recruiter Robert Walters.
The macroeconomic calendar will feature key data releases, including China's consumer price index and trade figures for September. Danske Bank expects continued strength in exports, driven by chips, electronics, and autos, with export prices rising 15% year-over-year due to higher costs for microchips and commodities. PPI inflation is forecast to climb above 4%, while CPI inflation is anticipated to rise from 0.8% to 1.0% year-over-year.
Across the Atlantic, the US consumer price index for September will be closely watched. Kathleen Brooks, research director at XTB, noted that markets anticipate headline inflation to rise to 3.7% from 3.4%, primarily due to rising energy costs. The core CPI rate is expected to increase slightly to 2.5% from 2.4% in August. Brooks emphasized the importance of this reading ahead of the FOMC meeting later this month, stating that higher inflation could keep interest rates elevated, negatively impact bonds, and pressure equities.
Brooks also highlighted the potential impact on precious metals, with gold and silver having rallied recently. A weaker-than-expected inflation reading could support precious metals through lower yields, while a stronger reading might exert downward pressure on them. The performance of silver above the critical $60 per ounce level will be particularly noteworthy.