Key events next week: US Fed, BoE interest rate decisions; US jobs report, UK PMI, Eurozone inflation and more

Events from India and around the world next week. (Representative Image)

The central banks of India, the United Kingdom, and the United States will meet in the upcoming week. These banks' monetary policy committees will announce their key decisions. Additionally, October jobs data for the US, and the Eurozone inflation data will be released. The October UK manufacturing PMI data is also awaited. Also, leading publicly traded companies in India and the US will also announce their earnings reports ending September quarter.

Let's take a look at the important policy, economic, and business events of the week starting October 31.

Eurozone CPI flash (on November 1)

Eurostat, the Central Statistics Office (CSO) of the European Union, will provide the flash estimate of inflation in the Euro zone on November 1. Economists in a Reuters poll expect euro wide Harmonised Index of Consumer Prices (HICP) to fall to 9.7% on an annual basis from a record 9.9% last month.

The euro area annual inflation rate rose 1.2% month on month to 9.9% in September 2022, figures published by the European Union's statistics office Eurostat said of the consumer prices in the 19 countries.

US ISM Manufacturing PMI for October (on November 1)

The Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) report on business in the United States for the month of OCtober will be released on November 1. It is summarizes the economic activity in the manufacturing sector in the US.

The September Manufacturing PMI registered 50.9%, 1.9% points lower than the 52.8% recorded in August.

(Activity in categories like new orders, inventories, and production and these sub-indices are guaged and then combined to create the PMI. A PMI above 50 would designates an overall expansion of the manufacturing economy whereas a PMI below 50 signifies a shrinking of the manufacturing economy.)

US Federal Reserve's meeting (November 1-2)

The U.S. Federal Reserve’s policy meeting is scheduled in next week (November 1-2). Policymakers will announce their outlook for US economy and their decision on interest rate in Washington on Wednesday (November 2).

Bloomberg survey found that the U.S. central bank will raise its benchmark interest rate by 75 basis points at its policy meeting, for a fourth consecutive time, lifting it to a range of 3.75% to 4.00%.

Economists surveyed by Bloomberg said, Federal Reserve officials will maintain their resolutely hawkish stance next week, laying the groundwork for interest rates reaching 5% by March 2023.

In its last meeting (September 20-21), Federal Reserve officials raised interest rates by 75 basis points to a range of 3% to 3.25%.  The central bank also reiterated it “anticipates that ongoing increases in the target range will be appropriate,” and “is strongly committed to returning inflation to its 2% objective.”

Bank of England rate meeting on November 3

Bank of England's (BOE) meeting on November is expected to introduce a 75 basis-point increase that will take the official rate to 3%. The central bank looks set to raise borrowing costs by the most since 1989, reported Reuters on October 28.

On August 4, the BoE raised rates by half a percentage point, its biggest increase in 27 years, and did so again in September.

UK Composite PMI for October (on November 3)

UK Composite Manufacturing Purchasing Managers’ Index (PMI), a weighted average of the Manufacturing Output Index and the Services Business Activity Index, for October will be released on November 3.

The UK releases Final PMIs for October, with Manufacturing on November 1, Services on November 3 and Construction on November 4. In September 2022, the Composite Purchasing Managers Index (PMI) was 49.1, compared with 49.6 in the previous month.

RBI MPC's unscheduled meeting on November 3

The Reserve Bank of India has scheduled a special meeting of its monetary policy committee on November 3 as it has to explain to the government why it failed to achieve the mutually set inflation target for three straight quarters.

Consumer Price Index (CPI) inflation rose to 7.41 percent in September, confirming that average inflation had stayed outside the 2-6 percent band for three consecutive quarters.

Inflation has been consistently above the MPC’s 2-6 percent target band for three consecutive quarters.

US jobs report on November 4

The United States labour department will release unemployment rate that tracks the percentage of citizens who are out of work, on November 4.

In September, the unemployment rate slipped to 3.5%.

(US Non-farm payrolls and employment data would provide cues about the health of the jobs market in the US and guide the Fed’s monetary policy path ahead.)

Q2 Earnings next week in India

JK Tyre, Nykaa, Sun Pharma, Tech M, Voltas, Whirlpool (November 1); Adani Transmission, M&M Finance, (November 2); Adani Enterprises, Bank of India, HDFC, Hero Moto Corp, HMT, Idea, Indian Bank, UCO Bank, JK Lakshmi, Indigo Paints, Orient Electricals, Rainbow, Raymond, Amaraja Batteries, (November 3); TVS Motor, Britannia, Escorts, GAIL, Indigo, Godrej Agro, Marico, TTK Prestige, Titan (November 4); Bank of Baroda, DCB Bank; Bombay Dyeing.

IPOs that will open for subscription in India

Four initial public offerings (IPOs) are looking to raise over Rs 4,500 crore next week. These companies are Bengaluru-based DCX Systems Ltd, cardiologist Dr Naresh Trehan-promoted Global Health Ltd, Bikaji Foods International Ltd and Fusion Micro Finance Ltd.

DCX Systems (October 31), Fusion Micro Finance (November 2), Bikaji Foods (November 3), and Global Health (November 3).

US Earnings to watch next week

Pfizer, Airbnb, Uber, Philips, BP, Sony Group Corporation, Eli Lilly, Devon Energy, AMD (November 1); Qualcomm, Cogniant, eBay, CVS Health (November 2); Starbucks, PayPal, Goldman Sachs, Toyota Motor, Moderna, Kellogg, Prestige, (November 3); Honda Motor (November 4).

(With inputs from Agencies)