The Week Ahead  13.11.2023

Ahead This Week

It's all about inflation data this week, as some of the world’s largest economies post their monthly reports. Starting in the US, headline inflation will be released on the 14th with the current rate standing at 3.7%. Last week’s hawkish comments by Federal Reserve Chairman, Jay Powell, hinted that the central bank would do all it could to get inflation below the 2% target. Additionally, US beef prices hit record levels last week, at an average of $8 per pound, speaking to the consistently stubborn level of inflation that US consumers are facing. On the 15th, UK inflation will be published, with the headline rate standing at 6.7%. And finally, on Friday final EU core inflation will be announced for the month of October. The current rate stands at 4.5%.

Earnings

Tencent Holdings, one of China’s largest technology companies will post their Q3 earnings on the 15th. Despite the rally in growth stocks this year, Tencent’s share price has lagged, down c7.7% YTD. On the same day, Cisco will publish their Q1 earnings. And finally on the 16th, the world’s largest discount retailer, Walmart will announce their Q3 earnings. With continued sticky inflation, analysts will be keen to see how the company’s margins hold up.

Chart of the Week

Further hawkish comments coming from the Federal Reserve last week pushed USD/INR to record highs. The Reserve Bank of India has continued to use its reserves of USD to lessen the extent of depreciation of the emerging market currency.