5 Important Developments to Follow This Week

Here are 5 important developments to follow this week. The US economic calendar continues to come to the fore.

1. US Inflation Data

October PPI data will be announced on Tuesday, one day after the CPI figures. CPI is expected to see its highest levels ever in the post-pandemic period. Economists expect increases of 0.6% month on month and 5.8% year-on-year. Core inflation, which excludes food and energy costs, may have increased by 4.3% annually. In the last meeting of the FED, it went to a reduction which investors interpreted as 'pigeon'.

2. FED (US Federal Reserve) Speeches

Fed Chairman Jerome Powell will speak for the first time on Monday at an online conference organized by the Fed on gender and the economy. On Tuesday, the Fed's Board of Directors will take part in an online conference on diversity and inclusion in the economy and central banking, jointly organized by the Bank of Canada, the Bank of England and the European Central Bank. Other Fed officials to speak with include Fed Vice Chairman Richard Clarida, New York Fed Chairman John Williams, Fed Executive Michelle Bowman, Philadelphia Fed Chairman Patrick Harker, Chicago Fed Chairman Charles Evans, and San Francisco Fed Chairman Mary Daly.

3. Earnings Reports

Equities markets were supported by stronger-than-expected third-quarter earnings reports, and Wall Street's major indexes closed at a record high, following positive data for the US's strong jobs report and Pfizer's (NYSE:PFE) experimental antiviral Covid-19 pill. New earnings reports could be the catalyst for new levels in the market. Companies to report next week include Walt Disney (NYSE:DIS), AstraZeneca (NASDAQ:AZN), BioNTech (NASDAQ:BNTX), Softbank (OTC:SFTBY), PayPal (NASDAQ:PYPL), Coinbase (NASDAQ:COIN), AMC Entertainment (NYSE:AMC), Krispy Kreme (NASDAQ:DNUT), and Adidas (OTC:ADDYY).

4. UK GDP Report

After the Bank of England surprised markets by keeping rates unchanged at its meeting last week, the country's third-quarter growth data will be released on Thursday and GDP is expected to drop to 1.5%. Investors had predicted that it would be the first major bank to raise interest rates after the Covid-19 pandemic.

5. Developments in China

Top leaders of the Chinese Communist Party will hold a meeting in Beijing from Monday to Thursday. The decision maker, the Central Committee, could authorize a third term for President Xi Jinping with an unprecedented decision. The meeting will take place in a critical environment where economic growth in the country slows amid strict measures to contain the epidemic, pressure on the real estate market, energy shortages and corrupt supply chains. Data on Sunday proved that Chinese exports slowed in October but still beat expectations. Imports, on the other hand, remained below expectations, showing that the weakness in domestic demand continued.       Source: Investing.com