There is only one key interest-rate decision next week. But there will be no shortage of Federal Reserve governors who will express their views about the inflation outlook.
The Reserve Bank of Australia is expected to lift interest rates by 15 basis points. At the bank’s last meeting in August, board members reckoned that inflation was too high. It also believed that inflation would only gradually return to target by late 2027. But it was concerned about rising unemployment. So, it kept interest rates on hold. This time it might not.
European Central Bank president Christine Lagarde is set to deliver a welcome address at the European Systemic Risk Board conference. At the latest ECB meeting, she said that the bank’s decision to hike interest rates was a no brainier. She also said that risks to growth are tilted to the downside, whilst inflation risks are to the upside.
The US will report its latest non-farm payroll numbers. Fewer jobs could have been created in September compared to August. But the unemployment rate could remain unchanged at 4.1%
On the corporate front
Micron Technology (Nasdaq: MU) will report fourth-quarter numbers. The market is expecting a sharp rise in earnings thanks to a surge in demand for memory chips. Revenue is projected to climb significantly from a year ago.
The market is divided over the outlook for Nike (NYSE: NKE). Some believe that it might only be a question of time before the sportswear company turns around its fortunes. Others reckon that it has made too many mistakes over the last five years. The proof could emerge when Nike reports first-quarter results next week.
McCormick (NYSE: MKC), which merged with the food business of Unilever (NYSE: UL) earlier this year, will report third-quarter numbers. The market expects the spices and seasonings business to report a decline in earnings, even though revenue could be higher.
Other earnings on tap include third-quarter numbers from cruise-line operator Carnival (NYSE: CCL) and fourth-quarter numbers from Accenture (NYSE: ACN). Carnival could have been impacted by higher fuel prices and the ongoing war between the US and Iran. Meanwhile, Accenture could have been affected by sluggish spending on consulting by customers and disruption to its core business by AI.
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David owns shares in Nike and Unilever.
