This week, the global financial market is facing significant fluctuations due to major economic events. These events, from Federal Reserve Chair Jerome Powell’s speech to the non-farm payroll report and manufacturing PMI data, will be at the forefront of investors’ attention. In addition, complex developments in the energy and gold markets are creating both opportunities and challenges for investors amidst economic uncertainties. Let’s take a look at the key information that investors need to watch this week.
1. Federal Reserve Chair Jerome Powell’s speech (September 30):
Powell will participate in a discussion at the National Association for Business Economics (NABE) annual conference. This is an opportunity for him to provide further details on the Fed’s future monetary policy direction, especially after the recent decision to keep interest rates unchanged. Investors will closely follow for clues on potential rate cuts in November.
2. Manufacturing and Services PMI (October 1 and 3):
- Manufacturing PMI (October 1): The PMI from S&P Global and the Institute for Supply Management (ISM) will release September data. This is a key indicator of business conditions and production activity in U.S. companies.
- Services PMI (October 3): The services PMI is also crucial in assessing the recovery of the services sector after the pandemic.
3. Non-farm payroll report (October 6):
This report provides data on the number of jobs created in September and the unemployment rate. Forecasts suggest a modest increase of about 150,000 jobs, while the unemployment rate is expected to remain steady at 4.2%. This is vital as it directly influences the Fed’s monetary policy decisions.
4. Gold and oil markets:
- Gold: Gold prices continue to rise amidst market volatility, achieving three consecutive months of growth. Gold is often seen as a safe haven during times of economic uncertainty.
- Oil: Oil prices have dropped sharply (-4.2%) due to concerns about weaker demand and international developments. The energy market may continue to experience volatility in the coming days.
These events will shape investor sentiment and market trends throughout the week.