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The Nobel Prize in Economics has implications for the Federal Reserve. Read more in today’s WSJ Economics newsletter:
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Tokyo and US Treasury Market Closures Create Thin Liquidity Ahead of Key Economic Reports
Tokyo's financial markets are closed on Monday for Sports Day, coinciding with the US cash Treasury market's closure due to Columbus Day. This dual holiday results in thinner liquidity across Asia, which may amplify market reactions to recent developments from Saudi Arabia, Russia, and Ukraine. However, markets in Singapore, Hong Kong, Australia, and New Zealand remain open, setting the stage for a busy week ahead.
The focus this week shifts to critical economic indicators, particularly the US Consumer Price Index (CPI) for September, scheduled for release on Wednesday at 12:30 GMT (8:30 ET). This report is significant as it is the last inflation reading before the Federal Open Market Committee (FOMC) meeting on October 27-28. The August CPI showed a monthly increase of 0.4%, with gasoline prices contributing significantly to the rise, and forecasts suggest a potential increase in September driven by energy costs.
In addition to the CPI, major banks including JPMorgan Chase, Goldman Sachs, Wells Fargo, and Citigroup are set to report their earnings on Tuesday, providing insights into credit conditions following the Federal Reserve's recent rate hikes. The week will also feature the release of September producer prices and advance retail sales on Thursday, further informing market expectations ahead of the FOMC meeting. Federal Reserve Chair Kevin Warsh is scheduled to speak at the IMF and World Bank Annual Meetings in Bangkok on Friday, marking his final public appearance before the blackout period ahead of the FOMC meeting.
Source: KLEA News