FUNDAMENTAL REVIEW FOR THE WEEK (07 - 11 October 2024)

After a busy last week with "hot" data on the American labor market, the "market temperature" will drop a little, although it will remain quite high. Investors' main attention may switch to geopolitical factors - the expectation of the outcome of the Middle East conflict and further monetary and fiscal measures from the Chinese Central Bank.

What to expect and what to prepare for this week We analyze the main financial and economic "milestones":

Asian stimuli

The return of the Celestial Empire after the holidays may be accompanied by new economic stimuli aimed at increasing domestic demand and consumption. China's recent harsh reaction to the increase in EU duties on electric vehicles could provoke a fall in the euro.

USA and inflation

After the publication of the September nonfarm report, markets are expecting subsequent statements from Fed members, which will likely make adjustments to current rate expectations. Inflation reports (CPI on Thursday and PPI on Friday) will be the key economic indicators of the week. Particular attention will be paid to core inflation CPI, especially in the services and housing sectors, as these are important indicators for the Fed's decision in terms of further steps in monetary policy. According to forecasts, inflation is expected to fall, which could potentially increase the appetite for risky assets.

Auctions for US government bonds

The placement of US government treasury bonds from Tuesday to Thursday will play an important role in the dynamics of the dollar exchange rate. The results of the auctions can affect bond yields and, accordingly, the value of the dollar. Successful auctions will contribute to the strengthening of the dollar, while weak results can lead to a weakening of the currency.

Company reports

The corporate reporting season traditionally begins with bank reports on Friday. These reports can provide initial signals about the state of the financial sector and its adaptation to the current economic situation and can significantly affect the value of shares of the reporting companies.