SP Global – Week Ahead Economic Preview

Next week, the focus will be on central bank meetings in the Eurozone and Canada, as well as flash October PMI data. These will provide early insights into the economic conditions in major developed economies. In the US, important economic indicators such as Q3 GDP, durable goods orders, core PCE, and personal income and spending figures will be released. APAC economies are also expected to release several tier-1 data. The European Central Bank (ECB) and the Bank of Canada (BoC) are facing reduced pressure for more rate hikes due to easing inflationary pressures. However, the duration of peak rates for the ECB is uncertain, and rising energy prices pose risks to the easing inflation trend. The HCOB Flash Eurozone PMI will provide updates on output and price developments. The BoC is facing uncertainty in their next move due to sustained wage pressures and falling CPI. The market has mixed views on whether another rate hike will occur. US government bond yields have been soaring, impacting equity prices, and geopolitical factors have also affected sentiment. Better-than-expected US retail sales data supported the increase in bond yields. Further updates on US Q3 GDP, September durable goods orders, and personal income and spending figures will provide clues about yields and the Federal Reserve's rate path. The flash PMI data for October will shed light on the growth trajectory at the beginning of the fourth quarter. US output has stagnated in recent months, while the Eurozone and UK have seen worse performances due to higher interest rates and elevated cost of living. Japan, however, has experienced sustained services growth due to its spared interest rate hikes.