The economic calendar ratchets down a few notches following the US election and news of China’s underwhelming stimulus package. That said, October US inflation data could tell us if the Fed was right to cut interest rates.
Core inflation in the US is expected to remain uncomfortably sticky for the month of October. An unchanged rate of 3.3% could suggest that it might take longer for inflation to reach the Fed’s target of 2.2%. The headline inflation rate could even have crept up from 2.4% to 2.6%.
Turning to the East, Malaysia will provide a final reading of its economic growth rate. It is expected to come in at a respectable 5.3%. The third-quarter GDP growth rate for Hong Kong is expected to come in at a disappointing 1.8%, whilst Thailand could register a reading of 2.7%.
Corporate Events
Attention next week turns from major US corporate earnings to companies in Asia. But there are still some notable American companies that will report numbers.
Walt Disney (NYSE: DIS) is expected to post another quarter of improved earnings. In August, the entertainment giant said it had turned around its streaming business. This is expected to continue into the fourth quarter. However, its parks and experience segment could still be weighed down by lower consumer demand and higher inflation.
It was once the bellwether of the tech sector, but Cisco Systems (Nasdaq: CSCO) is now, at best, seen as an also-ran. However, demand for A.I. could see a revival in the company’s fortunes. Nevertheless, the software networking company is forecast to register a drop in both the top and lines.
Tencent Holdings (SEHK: 0700), Alibaba Group Holdings (SEHK: 9988) and JD.com (SEHK: 9618) will be hoping that China’s stimulus package will be enough to improve consumer sentiment. The backstory has been less than encouraging, though. In August, all three companies highlighted a slowdown amongst Chinese consumers. So, a lot now hinges on whether the Chinese government has targetted the right areas. And Singles Day could be just what these companies need.
In August, Singtel (SGX: Z74) registered a solid performance in the first quarter. Whilst operating revenue did dip slightly in the first three months, both operating and net profit were strong. The telco said it should meet its goals for the year, as cost savings are on track at its Singapore and Australian operations.
Results are also expected from the owner of Shopee, namely, Sea Ltd (NYSE: SE), Grab Holdings (Nasdaq: GRAB) and Geely Automobile (SEHK: 0175). Additionally, on tap will be results from StarHub (SGX: CC3) and Seatrium (SGX: 5E2).
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