Week Ahead – Earnings Season To Begin

Author – Connor Woods, Senior Market Analyst

Date: October 17th– October 21st

There is no doubt it is a challenging environment out there, and last weeks data shows the Federal Reserve may need to tighten the screw even more in the face of higher inflation. With the key data to just keep on coming, here is what you need to know for this week.

Earnings Season

Third-quarter earnings will get underway this week, and it is fair to say the estimations are underwhelming. Reuters have reported that earnings are expected to have climbed 4.1% on average for the S&P500 companies. This is the slowest growth since the fourth quarter of 2020. Lower earnings expectations are likely to be priced into the markets already, but it will be how companies communicate about the future that could cause the volatility.

UK To Restore Dignity？

The UK‘s new Chancellor Jeremy Hunt has vowed to repair public finances after the recent turmoil caused by the former Chancellor and Liz Truss’s economic plan. In order to ease the panic caused by the proposed spending plan, Jeremy Hunt has just announced the UK will rip the mini-budget to shreds, saving £32 billion in spending. Even still, there is a feeling the UKs credibility has been severely dented.

U.S Housing Market

Rising interest rates have been hitting the housing market demand hard. The effect is now beginning to take its toll on housing prices, which fell in the US for the first time in over 10 years! This week, building permits, housing starts, and existing home sales data will be released. This could cause significant market volatility.

Everyone at Zenfinex hopes you are having a great trading week. If you would like to know more about the products we offer, feel free to visit https://zenfinex.asia/en/

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