Next week the US will publish inflation rate and the preliminary reading of Michigan consumer sentiment. Consumer prices are expected to have increased at a slower pace in September and morale is likely to soften. In addition, the Bureau of Labor Statistics will release producer and foreign trade prices; and the US Treasury its monthly statement of receipts and outlays of the federal government. Also, several Fed officials are due to speak at respective events next week, with investors looking for further clues on monetary policy.
Other highlights for America include Canada housing data; Mexico inflation rate; and Brazil retail trade. On Sunday October 7th, Brazilians will go to the polls for general elections. Jair Bolsonaro, the far-right nationalist, continues to lead opinion polls.
In the UK investors will turn their attention to monthly GDP figures, alongside industrial production, construction output and trade balance. Forecasts point to a softer GDP and construction growth but to a slightly stronger pace of expansion in industry. Elsewhere in Europe, traders will pay attention to minutes from the last ECB monetary policy meeting for further details on the next monetary policy steps. Eurozone industrial production and Germany trade balance will also be in the spotlight.
Markets in China will open on Monday after a week-long holiday, providing the first reaction to escalating conflicts between China and the US. Later last week, a report showed China secretly planted spy chips in products from Amazon and Apple and the US Vice President Mike Pence accused China of "malign" interference in the upcoming US midterm elections. On the economic data front, important releases include figures for foreign trade, Caixin Services PMI and monetary indicators. Export and import growth is set to slow in September amid an escalating trade dispute.
Investors will also focus on India's inflation rate, which is expected to accelerate in September from a ten-month low due to persistent currency weakness and higher oil prices. Yet, the Reserve Bank of India left its interest rates steady and lowered inflation forecasts on Friday, mentioning benign food inflation.
Other important releases for the Asia-Pacific region include Japan current account and machinery orders; Australia business and consumer confidence; and Singapore advance estimate of third-quarter GDP growth. Markets in Japan will be closed on Monday for the Health and Sports Day holiday.
Annual meetings of the IMF/World Bank will also take place next week in Bali, Indonesia.