Markets eye US Fed, PCE data in 'super central bank week'
This week is a 'super central bank week' with the US Federal Reserve, European Central Bank and Bank of Japan all expected to hold interest rates. Markets will focus on Fed chair Jerome Powell's post-meeting comments for policy clues. US PCE inflation data and Q3 GDP are also due.
Major US stock indexes posted mixed results last week. The Dow Jones Industrial Average rose 0.4 per cent, extending its winning streak to three weeks, while the Nasdaq Composite fell 0.7 per cent and the S&P 500 slipped 0.5 per cent, with both indices declining for a second consecutive week.
This week is shaping up as a 'super central bank week', with the US Federal Reserve, the European Central Bank and the Bank of Japan all scheduled to announce interest rate decisions. Markets widely expect all three central banks to hold rates unchanged, according to RTHK. Attention will focus on US Federal Reserve chair Jerome Powell's post-meeting press conference for clues on the future policy path.
The Bank of Canada, the Reserve Bank of New Zealand and the Bank of Thailand will also announce their rate decisions this week.
In the United States, the personal consumption expenditures (PCE) price index — a key inflation gauge watched by the Fed — will be released. Market forecasts cited by RTHK suggest September's headline PCE will accelerate to 3.6 per cent year-on-year and 0.5 per cent month-on-month. Core PCE is expected to rise 3.1 per cent year-on-year and 0.3 per cent month-on-month, also slightly faster than August's pace.
The US will also publish its advance estimate for third-quarter gross domestic product, which is forecast to show an annualised quarterly growth rate of 3.2 per cent.
Major companies including Microsoft, Alphabet, Amazon, Boeing and Coca-Cola are due to report quarterly earnings this week.