What happened this week

After another rollercoaster week of trading, with the S&P 500 reporting a 1.6% loss, futures over the weekend were slightly higher.

In September inflation (Consumer Prices) was still up a further 0.4%, surpassing expectations, and causing another week of market swings. Fears amongst investors remain focussed on the Fed’s potential rates hikes, which many economists think may drive the US economy further into a recession rather than offering the remedy desired.

Globally, countries continue to take measures to treat inflation problems; Liz Truss, the new British Prime Minister, announced that the UK would abandon a previously approved tax cut and the Chinese President Xi Jinping spoke of China’s shift from rapid economic growth to “national self-sufficiency”. What is clear to see is how the markets are reacting sharply to any fiscal policy announcements.

This week continues the third quarter earnings season with financial reporting early in the week.

Bank of America reports before market open on Monday and Goldman Sachs announces results on Tuesday. The blue chip technology companies all report this week as well; Netflix, Tesla, IBM, Johnson & Johnson, United Airlines, AT&T, Procter and Gamble and Verizon.

This week:

Tues Oct 18: Industrial Production Index

Wed Oct 19: Housing Starts and Building Permits

Thurs Oct 20: Jobless Claims

Fri Oct 21: Index of Common Inflation Expectations 5-10 years (CIE), a broad-based quantitative measure of medium term expectations.