Stock Market to Experience an Active Week

The stock market focused on the intense data agenda to be presented this week. Macroeconomic data announced around the world cause volatility in global stock markets.

In the US, the Consumer Price Index (CPI) increased by 0.4 percent monthly and 8.2 percent annually in September, above expectations. The core CPI, which does not include volatile energy and food prices, also exceeded market expectations with 0.6 percent monthly and 6.6 percent annualized in September. In this way, core inflation reached the highest level recorded since 1982 on an annual basis. The US central bank Fed is expected to raise interest rates by 75 basis points at next month's meeting. The selling pressure in the bond markets of the United States continues to be effective. Bond yields in the country have been rising for 9 weeks in a row. The US 10-year bond yield rose by about 18 basis points this week, closing above 4 percent. This level has been recorded as the highest weekly closing since July 2008. The barrel price of Brent oil lost 7.2 percent this week. Brent oil fell to 90.7 dollars. The ounce price of gold also fell 3 percent to $ 1,644. In the light of the announcements made on Friday, the net profit of JPMorgan Chase, Morgan Stanley, Citigroup and Wells Fargo, one of the largest banks in the US, declined in the third quarter compared to the same period last year. The consumer confidence index measured by the University of Michigan increased by 1.2 points to 59.8 in October, exceeding market expectations. On the New York stock exchange, the S&P 500 index lost 1.55 percent weekly and the Nasdaq index lost 3.11 percent, while the Dow Jones index rose 1.15 percent.

Europe Awaits Inflation Data

Europe is keeping an eye on the inflation figure. Volatility in the UK bond market caused the country's equity markets to diverge negatively this week.  In Europe next week, all eyes turned to the data agenda, especially Wednesday's UK and Eurozone inflation data. While energy supply problems, inflationary pressures and a hawkish European Central Bank (ECB) continued to be the main risk factors in Europe, the volatility in bond markets in the UK was carefully monitored throughout the week. According to macroeconomic data released in the region, annual inflation in Germany rose to 10 percent in September, the highest level since 1951. Next week, Zew expectations index on Tuesday and PPI on Thursday in Germany and consumer confidence index data in the Eurozone on Friday will be followed.

Asia's Attention is on CCP's 20th National Congress!

While equity markets in Asia followed a mixed course this week, the 20th National Congress of the Communist Party (CCP), which governs the country in China, is in the focus of investors. CCP General Secretary and President Xi Jinping's messages on solving problems in an environment where economic and financial difficulties are trying to be overcome will be among the headlines that investors will pay attention to. The Japanese government also announced that it is ready to "decisively intervene" against the "speculative fluctuation" experienced by the yen, which continues to depreciate against the dollar. While the Shanghai composite index in China gained 1.57 percent, the Nikkei 225 index in Japan fell 0.09 percent, the Kospi index in South Korea fell 0.90 percent and the Hang Seng index in Hong Kong fell 6.50 percent. 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!