Markets Await Key Economic Data Amid Rate Hike Bets
The week ahead is packed with significant economic releases and corporate earnings announcements that will shape market sentiment. The highlight of the week will be the US non-farm payrolls report on Friday, which is expected to show a gain of 104,000 jobs, with an unemployment rate ticking up to 4.2%. This data will be closely watched by the Federal Reserve, as it will influence their decision on interest rates.
On Tuesday, several UK companies, including AG Barr and Card Factory, will release their first-half results, while in the US, quarterly results from Carnival, CarMax, and Concentrix are due. The Reserve Bank of Australia is also expected to hike interest rates by 25 basis points to 4.60% on Friday.
Investors will also eye the latest policy announcement from the RBA and UK consumer credit, mortgage approvals, and net lending data for August. Dan Coatsworth, head of markets at AJ Bell, notes that Greggs' third-quarter update should reveal how the chain is managing costs and whether product innovation has helped revive momentum.
Neil Wilson, UK investor strategist at Saxo Markets, believes the US inflation data will shape expectations for the Fed's October meeting, with markets pricing in a roughly 70% chance of back-to-back rate hikes. Patrick Munnelly at Tickmill Group expects a solid job gain and low unemployment to support market pricing.