This week – central bank decisions and U.S. growth data in focus
2⃣Tue night: U.S. September durable-goods orders and new-home sales will provide early indications of business investment and housing demand.
3⃣Wed night: The U.S. Federal Reserve’s (Fed) interest-rate decision will be the week’s main event. The Federal Open Market Committee concludes its two-day meeting on 28 October, with the policy statement due at 2:00 a.m. Malaysian time on Thursday. Investors will focus on the Fed’s assessment of inflation, economic activity and the labour market, alongside any guidance on the likely path of interest rates (FedRateCalc).
The Fed’s communication could have broad implications for U.S. Treasury yields, the U.S. dollar and growth-sensitive technology shares. A more hawkish stance, particularly if policymakers emphasise persistent inflation, could place upward pressure on yields. Conversely, greater concern surrounding growth or employment could strengthen expectations for future policy easing.
4⃣Thu night: U.S. third-quarter GDP and September personal consumption expenditures (PCE) inflation will be released simultaneously at 8:30 p.m. Malaysian time. The advance GDP estimate will provide the first comprehensive assessment of US economic growth during the third quarter, with household consumption and business investment likely to receive particular attention.
The September PCE report will be equally important, as the core PCE price index is the Fed’s preferred underlying inflation measure. Investors will assess whether inflation is continuing to moderate and whether consumer spending remains resilient. As the figures arrive shortly after the Fed’s decision, they could quickly reshape market expectations surrounding the next policy move (FedRateCalc).
5⃣Fri: The Bank of Japan’s (BoJ) interest-rate decision and Outlook Report will be closely watched across Asian markets. The BoJ’s two-day meeting concludes on 30 October, although no fixed release time has been specified. Alongside the policy decision, the central bank will publish updated economic and inflation projections, which could influence the yen, Japanese government-bond yields and the Nikkei 225 Index.
6⃣Sat morning: China’s October official purchasing managers’ indices will provide an early reading of economic momentum entering the fourth quarter. Investors will watch whether manufacturing activity remains above the 50-point threshold separating expansion from contraction, while the non-manufacturing index will offer signals on services and construction activity (FinanceCalendar).
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- FabianGracie·13:42Fed wording matters most for tech here. I care more about how the rate path hits growth multiples than the headline cutLikeReport
