RBA Hike and US Inflation Data Set Stage for Market Volatility

The upcoming week is expected to be filled with significant economic releases and company earnings reports. In the UK, AG Barr, Card Factory, and Close Brothers will release their first-half results on Tuesday, while in the US, Carnival, CarMax, and Concentrix will announce their quarterly results.

Investors are also looking forward to the Reserve Bank of Australia's policy announcement, which is widely expected to be a 25 basis point hike to 4.60%. ING believes this decision should support the Australian dollar, despite its recent decline due to external factors.

On Wednesday, Greggs will release its third-quarter trading update, which will provide insight into how the company is managing costs and product innovation. Investors are also looking for an update on estate expansion plans and new compact formats amid concerns about saturation point.

The week's macroeconomic highlights include second-quarter GDP figures for the UK and US, as well as US PCE data. Neil Wilson at Saxo Markets notes that US inflation data will shape expectations for the Fed's October meeting, with a roughly 70% chance of back-to-back rate hikes.