5 Important Developments This Week

We have compiled for you 5 important developments of this week that will cause movements in the stock market.

On the first day of the new week, here are 5 important developments that investors should pay attention to this week:

Earnings reports

Third-quarter earnings season data; watch out for results in a challenging environment due to a stronger dollar and persistently high inflation! Earnings at S&P 500 companies are expected to rise 4.1% from a year earlier, the slowest growth since the fourth quarter of 2020, Reuters reported. Tesla (NASDAQ:TSLA), Netflix (NASDAQ:NFLX) and Johnson & Johnson (NYSE:JNJ) are among the companies set to release earnings reports next week.

United States housing data

Following the release of higher-than-expected inflation data in the US last week, eyes will turn to the housing market with reports on building permits, housing starts and existing home sales. With rising interest rates hitting housing demand, house prices fell for the first time in more than 10 years in July, while mortgage applications also declined. The economic calendar also includes reports on industrial production, the Philly Fed Manufacturing Index, the Empire State Manufacturing Index and initial jobless claims. Regional Fed presidents Neel Kashkari, Charles Evans and James Bullard will also make statements that will be closely monitored.

There is an effort for stability in the UK

Weathered British government bonds will continue to trade on Monday without the support of the Bank of England's (BoE) emergency bond-buying program, which expired on Friday. Jeremy Hunt, the UK's new Chancellor of the Exchequer, said the country would overhaul its public finances after the original economic plan put forward by Liz Truss and former Chancellor of the Exchequer Kwasi Kwarteng upset financial markets. News that the government is preparing to make a major U-turn on planned tax cuts has helped ease fears over public finances, but this will need to translate into concrete plans to avoid a fresh sell-off in bonds. Investors are also awaiting September inflation data to be released in the UK on Wednesday, which is expected to hit double digits due to the cost of living, while Friday's retail sales data is expected to point to a decline in consumer spending.

Data to be released by China

China will release third quarter GDP data on Tuesday and while growth is expected to pick up from the previous quarter, the economy remains on track to record its slowest annualized growth rate in nearly 50 years. The annual growth rate is expected to increase by 3.4% in the three months to September, up from 0.4% in the second quarter. Analysts expect China's economy to grow by 3.2% in 2022, well below the official target of 5.5%.

Japanese Yen Intervention

FX traders said they will be watching the yen closely amid speculation that the Bank of Japan (BoJ) may take further steps to support the currency after it intervened in markets last month for the first time since 1998. BoJ Deputy Governor Masazumi Wakatabe said on Saturday that recent fluctuations in the yen were "clearly too fast and too one-sided", expressing concern about the potential implications for the economy of the currency's slide to a 32-year low against the dollar. Japan stands out among global central banks that have raised rates to combat rising inflation with a focus on supporting a fragile economic recovery. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!