Monetary policy meetings by the FOMC, ECB, Bank of Japan, Bank of Canada and Reserve Bank of New Zealand are concentrated this week. Protests in France and developments ahead of the U.S. midterm elections are among the financial and economic focal points expected to affect global markets.
Major central banks are set to hold a series of monetary policy meetings this week. The Federal Open Market Committee (FOMC) and the ECB are scheduled to hold their regular meetings, and the results could shift market expectations for interest rates.
In the United States, expectations are spreading that the probability of a rate hike this year will decline following the FOMC's policy of keeping rates unchanged. At the same time, core PCE and third-quarter GDP remain key indicators for assessing the outlook for inflation.
The Bank of Japan is reportedly expected to leave its policy rate unchanged at its meeting, making the possibility of a December rate hike a likely focus of discussion. The Bank of Canada and the Reserve Bank of New Zealand are both considered likely to raise rates by around 0.25%.
Large-scale protests are scheduled in France, raising the possibility that fiscal and political risks could spill over into the broader European situation. Developments in the Middle East and fluctuations in oil prices will also continue to heighten market tensions.