In overseas markets next week, preliminary October PMIs from the US and Europe will coincide with developments in inflation data, while earnings reports from Meta Platforms and Tesla will be in focus. Developments in the Middle East and oil prices will also be monitored as risk factors.
Next week will bring a series of releases of preliminary October PMIs from the US and Europe and US inflation indicators, including CPI and PPI, making the outlook for rate hikes a market focus. September CPI exceeded market expectations and PPI also rose sharply, renewing attention on expectations for an additional rate hike this year. Meanwhile, developments in major capital markets are also being reported alongside concerns over investment in AI-related areas and expectations of capital rotation into non-AI sectors.
The earnings season will enter its second week, with results from Meta Platforms and Tesla drawing the most attention. The focus for Meta will be whether it can dispel concerns about overheating in AI investment, while the stock's performance following its decline after the previous earnings report is expected to influence the market reaction. Earnings reports are also scheduled from other large-cap companies, including Netflix, P&G, American Express, GM, IBM, TI, Newmont and 3M.
International crude oil prices are continuing to rise amid heightened tensions in the Middle East and growing supply risks. WTI rose more than 10% on a weekly basis, while the volume of traffic through the Strait of Hormuz declined sharply. Gold and silver markets were soft, and future FRB developments and market interest-rate expectations may affect short-term asset allocation.
In Europe, attention is focused on ECB financial conditions and UK inflation data. The UK is due to release employment data and September CPI, and the probability of a November rate hike and expectations for future rate hikes will be reflected in prices. In Japan, the release of September national CPI and the Bank of Japan's policy meeting are in focus and could influence the possibility of a rate hike in December.