The Week Ahead 31.10.2023
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Its set to be a busy week for macro news. In Asia, the Bank of Japan will make an interest rate call today. The current rate stands at -0.1%, however rising inflation and bond yields is adding pressure on the bank to adjust the current low-rate policy. Despite this, economic forecasts expect the rate to stay at -0.1%. In the US, the focus will be on the Federal Reserve’s interest rate call on the 1st. Economists believe there will be one more rate hike before the end of 2023 however recent Jay Powell comments suggest that hike may come in the December meeting. On the 3rd US unemployment data will be released with the current rate at 3.8%. In the UK on the 2nd the Bank of England will make an interest rate call. Expectation is for the rate to stay at 5.25%.
On the earnings front, Toyota, the world’s second-largest car manufacturer will publish their Q2 earnings on the 1st. The world’s largest company, Apple, with a market cap of $2.6Tr, will release its Q2 earnings on the 2nd. And on the 3rd, energy giant Royal Dutch Shell will publish their Q3 earnings. With the recent rally in energy prices, it will be interesting to see how impactful this is on quarterly performance.
Chart of the Week
Bitcoin has experienced a strong rally YTD, up c.108%. In recent weeks, weak macro news and tensions in the middle east have resulted in a selloff in growth assets, but not Bitcoin. The crypto’s value is up c.27% over the last month as investors grow more confident trading it in funds and on exchanges as the regulatory landscape becomes clearer.
Weekly global equities chart, tracking the performance of major stock markets.
Monitoring the fluctuations in bond yields across international markets.