Upbeat music plays throughout.
[Screen shows “Weekly Market Outlook with Jeffrey Kleintop”]
[Jeff holds up an illustration of a black cat labelled “October”]
October can be a scary month for investors, often featuring jump scares in the stock market. Kicking off the month we have the U.S. jobs report, a new President in Mexico, inflation data in Europe, the Golden Week holiday in China, and some earnings from big consumer brands. I’m Jeff Kleintop with 90 seconds on what you need to know for the week ahead.
If over 40,000
[Jeff holds up an illustration of people holding signs labelled “Strike”]
U.S. workers at East and Gulf Coast ports go on strike at the end of the day on Monday it may create major economic disruptions depending upon how long it lasts. Shippers have been bringing forward shipments and diverting to the west coast to avoid getting cargo stranded outside of idled ports.
Monday’s China
[Jeff holds up an illustration of a dragon labelled “China”]
September PMI surveys, which took a snapshot of business conditions before the People's Bank of China unveiled a powerful stimulus package last week, are likely to show continued weakness for the economy.
And on Tuesday in China, the Golden Week holiday starts, with travel and entertainment spending in focus for the world’s second-largest economy.
Also on Tuesday, in the Eurozone headline inflation
[Jeff holds up an illustration of an alarm clock labelled “CPI”]
likely dipped below the European Central Bank's 2% target for the first time since 2021. The dip is likely to be mainly fueled by fuel costs while services costs remain stable at an elevated level close to the 4.1% recorded in August.
And there is even more on Tuesday to watch
[Jeff holds up an illustration of clasped hands shaking]
as Claudia Sheinbaum is sworn in for a six-year term as Mexico’s new president. Sheinbaum takes office with a strong mandate, having won 60% of the vote while the government coalition took large majorities in congress. The six-year review of the USMCA trade agreement forged under President Trump will be under review during her term in an environment less friendly to trade.
On Wednesday we get
[Jeff holds up an illustration of a clipboard and pen, labelled “Job Application”]
unemployment data for Europe but on Friday we get the widely watched U.S. jobs report, with the potential to swing the markets’ expectations for rate cuts in either direction. Economists expect another sub 150,000 reading in net new jobs for the 5th month in 6 and similar to last month’s 142,000 net new non-farm payroll jobs.
Also, this week offers
[Jeff holds up an illustration of a thermometer labelled “Consumer Sentiment”]
some earnings news ahead of the wider reporting earnings season due to start in a couple of weeks. The key reports this week offer insight into the state of the consumer with Nike expected to post its biggest quarterly sales drop in about four years. And Carnival and Constellation Brands also report, providing further color on U.S. discretionary spending, with the latest monthly data showing consumer confidence waning the most in three years.
[Jeff holds up sign saying "Thank You"]
Thanks for watching.
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