It will be a holiday-shortened trading week in the US, as American households take a break for Thanksgiving on 28 November. Both the stock and bond markets will be closed on the Thursday. They will reopen the next day, but they will close early for Black Friday. So, don’t hold your breath for anything dramatic to happen next week.
Probably the most exciting events on the interest-rate front could be the FOMC minutes. That said, the Bank of Korea will need to make an important call on interest rates. On the one hand, inflation has been cooling and the economy has been weaker than expected, which would suggest another cut in interest rates is called for. But the won needs propping up against the US dollar. So, the general consensus is for the BoK to sit on its hands for now.
There are inflation numbers that might be worth keeping an eye on. The October PCE in the US could tell us whether the Fed has been a little too eager to cut interest rates. A number of around 2.7% could suggest that inflation in the US remains sticky and that the Fed might need to hold off on further rate cuts.
In the eurozone, inflation is looking sticky, too. In October, it accelerated to 2% from 1.7% in the previous month. It is expected to pick up again to 2.3% in November.
In Singapore, the headline inflation rate is expected to moderate from 2.0% in September to 1.7% in October. A reading of 1.7% would be the lowest in over three years. However, a lot hinges on housing costs that remained above 3% at the last count.
In India, the economy appears to be stuck in low gear. In the second quarter, it only expanded 6.7%, which was a significant slowing from 7.8% in the March quarter. In the third quarter, it might only have grown 6.8%. Could the country be hurting from interest rates being too high for too long?
Corporate Events
There is a distinct Asia flavour to the earnings season as we enter the final stretch of 2024. Malaysia’s two largest banks, namely, Malayan Banking (KLSE: 1155) and Public Bank (KLSE: 1295) are pencilled in for third-quarter results.
If peer comparison is any guide, then Maybank could be set for another set of commendable results. In August it said it was optimistic of its prospects for the second half. Public Bank is unlikely to be left out. It said the operating environment in Malaysia was conducive to growth that was underpinned by resilient private expenditure and investment activities.
A pair of food companies are set to deliver their report cards. Jumbo Group (SGX: 42R) said in May that first-half profit climbed 12% on revenue that grew 21.5%. The restaurant group said its businesses in the People’s Republic of China and Taiwan have lagged compared to Singapore. Whilst it said that it was optimistic about the next 12 months, it was cautious about challenges such as rising raw-material costs and manpower shortages.
Vitasoy International (SEHK: 0345) said in June that full-year profit jumped 155%, even though revenue declined 2%. The company said it is committed to improving revenue and profit growth in Mainland China and the overall Group.
Turning to property, KLCC Stapled Securities (KLSE: 5235SS) will report third quarter results. The owner of the Petronas Twin Towers and the Suria KLCC shopping centre said it expects the retail sector to benefit from friendlier visa regulations for key markets such as China and India until the end of 2024.
Other companies that are set to report include electric fan maker Panasonic Malaysia (KLSE: 3719), Malaysian power company Tenaga Nasional (KLSE: 5347) and the maker of Tiger brand pharmaceuticals Haw Par (SGX: H02)
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Maybank, Public Bank, Vitasoy International, KLCC Stapled Securities, Panasonic Malaysia, Tenaga Nasional, and Haw Par and are constituents of the DKIP portfolios.
