Most of the major indices have been flat this week, with UK Large & Midcaps being a bright spot as the FTSE100 & FTSE250 rose 2%:
UK Small and Midcaps remain the global laggards year-to-date, suggesting that renewed confidence in UK large caps has yet to trickle down to smaller companies.
It’s been a volatile couple of weeks for gold. Last week, I noted that it had risen strongly, making all-time highs. By mid-week this week, it had given back last week’s gains on dollar strength, testing the psychologically important $4,000/oz level. It ends the week somewhere in the middle and is likely to remain there unless it definitively breaks $4,400/oz on the upside or that $4,000/oz resistance on the downside:
Here's what we can look forward to next week:
Economic Calendar
Monday 27 Oct |
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08:00 |
Germany |
Business Climate |
12:30 |
United States |
Durable Goods Orders |
Tuesday 28 Oct |
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07:00 |
Germany |
Consumer Confidence |
Wednesday 29 Oct |
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05:00 |
Japan |
Consumer Confidence |
09:30 |
UK |
BoE Consumer Credit Mortgage Approvals Mortgage Lending |
18:00 |
United States |
Fed Interest Rate Decision |
Thursday 30 Oct |
||
05:00 |
Japan |
BoJ Interest Rate Decision |
10:00 |
Euro Area |
GDP Growth |
12:30 |
United States |
GDP Growth |
13:15 |
Euro Area |
ECB Interest Rate Decision |
Friday 31 Oct |
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07:00 |
UK |
Nationwide HPI |
10:00 |
Euro Area |
Inflation (CPI) |
08:30 |
Germany |
Manufacturing PMI |
12:30 |
United States |
Personal Spending |
15:00 |
United States |
New Home Sales |
Interest Rates
Next week, we have three key interest rate decisions: the US, the Euro Area, and Japan.
In the US, market expectations are for a further 25bps cut to 4.0% in October, despite the September inflation print showing mixed signals. The key factor appears to be evidence of labour market weakness:
[All charts in this section: Trading Economics]
In the Euro Area, the market expects no change to the current 2.15% until September next year, so this is unlikely to be a surprise.…
