The Reserve Bank of India's (RBI) monetary policy meeting is a major market event that is scheduled in the next week. There will also be significant global economic data releases as well as consumer-related data from the US, UK, China, and Japan, which will be followed by investors and markets worldwide.
A few major companies, including Nike, Bed Bath & Beyond, Micron, Cal-Maine Foods, Cintas are also scheduled to report their financial results.
Let's take a look at the important policy, economic, and business events of the week that starts from September 27:
September 27 (Tuesday):
US Consumer Confidence Index
Consumer confidence measure will indicate how this key pillar of the economy is holding uphe world's biggest economy. The Conference Board Consumer Confidence Index increased in August, following three consecutive monthly declines. The Index stood at 103.2, up from 95.3 in July. The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—improved to 145.4 in August from 139.7 in July. This month’s index is expected to come in at 104, a Reuters poll suggests.
US New home sales
New Home Sales measures the annualised number of new single-family homes that were sold during the prior month. The housing sector is the most sensitive to and experiences the most immediate impacts from the Federal Reserve's interest rate policy changes.
In August, the existing home sales slipped to the lowest in two years, marking a seventh straight monthly decline, showing continued slowing in the US housing market as mortgage rates surge. Sales of all types of homes and condos fell 0.4 percent from July even while prices eased in the month.
Fed Chair Jerome Powell to speak on digital finance
Jerome Powell, the head of the Federal Reserve, will take part in a panel discussion on digital banking at a gathering in Paris. "Opportunities and Challenges of the Tokenization of Finance: What Role for Central Banks?" is the topic of the discussion.
St. Louis Fed President James Bullard to speak
James Bullard, president of the Federal Reserve Bank of St. Louis, will give a speech on the American economy and monetary policy before taking part in a panel discussion in London.
China Industrial profit data for August
The data on China's industrial production for August will also be of interest to the international markets.
Profits at China's industrial firms sank in July, reversing previous gains as fresh COVID-19 curbs dragged down demand and squeezed factory margins, while power shortages due to heatwaves threatened production. Profits at China's industrial firms fell 1.1 percent in January-July from a year earlier, wiping out the 1 percent growth logged during the first six months. In July, China's industrial output growth slowed to 3.8 percent on-year from 3.9 percent in June.
September 28 (Wednesday):
RBI Policy meet begins
RBI Governor Shaktikanta Das-headed rate-setting panel Monetary Policy Committe (MPC) will start its three-day (September 28-30) deliberation to frame the bi-monthly monetary policy and discuss interest rates.
September 29 (Thursday):
Weekly unemployment claims as well as the final GDP Q2 figures will be released from the US.
US weekly initial jobless claims
The weekly jobless claims data of the US is due on September 29.
The number of Americans filing new claims for unemployment benefits is on the rise. They increased moderately last week (ending September 17), indicating the labor market remains tight. Initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 213,000 for the week ended September 17, the Labor Department said.
The US initial claims for unemployment benefits fell for the week ended September 10 as well, to the lowest level since the end of May.
(Initial Jobless Claims measures the number of people who filed for unemployment insurance for the first time during the past week.)
US GDP Q2 final data
The final data of US GDP for the second quarter will be posted on Friday. According to the advance reading, real gross domestic product (GDP) decreased at an annual rate of 0.6 percent in the second quarter of 2022, following a decrease of 1.6 percent in the first quarter. The second-quarter decrease was revised up 0.3 percentage point from the "advance" estimate released in July.
UK Q2 GDP final data
Some economists, according to a report in Reuters, said UK's economy might be on course to shrink in the July-September period with its gross domestic product (GDP) having contracted by 0.1% in the April-June quarter.
In output terms, services fell by 0.4% in Quarter 2. Monthly estimates published on August 12 showed that GDP fell by 0.6% in June.
Earnings Reports
Earnings reports will come from Rite Aid, Bed, Bath & Beyond, Carmax, Nike, and Micron Technology.
September 30 (Friday):
RBI MPC meet rate decision
The Reserve Bank of India (RBI) will announce the resolution of the Monetary Policy Committee (MPC) on September 30.
The rate-setting panel on August 5 hiked the key lending rate, the repo rate, by 50 basis points (bps). With the latest hike, the repo rate now stands at 5.4 percent. Repo is the rate at which the central bank lends short-term funds to banks. Changes in this rate typically gets transmitted to the broader banking system.
The rate-setting panel has hiked the key policy repo rate by a total of 140 basis points since early May. It is expected that RBI MPC will raise the rate again as it seeks to curb inflation.
Japan's Industrial output & unemployment rate for August
Japan will release its August industrial production data next week. It may suggest a slowdown in manufacturing activity, according to a report in Reuters.
The report said Japan's factory output likely fell again in August as the country's manufacturing sector faced supply chain disruptions driven by a global chip shortage and the spread of the Delta coronavirus variant in Southeast Asia.
US Core PCE Price Index
The US core PCE reading, considered as the Fed’s preferred measure of inflation, will be announced on Friday.
The latest reading in July was 4.6 percent, its lowest in nine months. The core PCE reading could give us a clue as to the Fed’s next move.
China Manufacturing and Non-Manufacturing PMIs & Caixin Manufacturing PMI for September
Data on China's manufacturing and non-manufacturing PMIs as well as the September Caixin Manufacturing PMI will also be released.
China’s factory activity unexpectedly contracted in July while property sales continued to shrink, highlighting the fragility of the economy’s recovery amid sporadic Covid outbreaks.
The official manufacturing purchasing managers index fell to 49 from 50.2 in June.
The Caixin manufacturing purchasing managers' index (PMI), based on a survey of mainly smaller and privately-owned businesses, also showed a weakening in sentiment. It slid to 49.5 in August from 50.4 in July. The index was 51.7 in June.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
