All three major U.S. stock indices recorded weekly declines as the market's hawkish expectations of the Federal Reserve continued throughout the week. At the same time along with a number of technology companies announced layoffs or stop hiring, the Nasdaq accumulated a decline of more than 5.6% worst performance. Looking ahead to next week, a number of Fed officials will make a new narrative on the future direction of interest rates and economic performance. While Powell has said he is considering downshifting rate hikes, other officials may see no signs of job market slack and continue to send unfavorable signals to the stock market due to the better-than-expected non-farm payrolls released this Friday. On the data front, the heaviest hitter is the U.S. Consumer Price Index (CPI) report for October, scheduled for next Thursday. Looking back at the September report, when the CPI year-on-year growth rate fell only a little from the high, and core inflation was again brushed 40-year high, indicating that the upward pressure on U.S. prices is still huge, and more solid.
However, these points can not steal the most grand show next week - the U.S. 2022 midterm elections. The results of this election will determine the pattern of power of the two parties in the U.S. Congress in the next two years, thus affecting the direction of U.S. politics, and therefore received widespread attention. In the past two years, the Democratic Party has been in control of the White House, the Senate and the House of Representatives, so that it can smoothly implement the policies and bills advocated by Biden. The latest polls show that the Republicans are likely totake back control of both chambers in this election, making Biden the "lame president". The article read the U.S. midterm elections: "elephant" raging Biden how to deal with the midterm?
In addition to the U.S. midterm elections, the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27), which begins this Sunday, is also worth watching. Leaders, government representatives, experts, private sector and civil society representatives, academics and policymakers will gather in Egypt to discuss measures to prevent the climate crisis. Several Western countries have been caught in an energy crisis this year due to geopolitical and other factors. In this environment, the outside world seems to have lost hope that these countries will further accelerate emissions reductions, and the conference is expected to focus on whether countries will fulfill the commitments made last year. The energy markets are likely to react accordingly at that time.
COP27 climate conference weekend: what are the topics of interest? Back in the U.S., the third quarter earnings season is nearing its end, with results from Rivian, Lucid, Occidental Petroleum and a number of mid-cap companies to watch. It is also worth mentioning that Winter Time begins next week in North America, with trading hours in the U.S. and Canadian financial markets delayed by one hour from Daylight Saving Time. Overview of important events next week (Beijing time). Monday (Nov. 7): Germany's September quarterly industrial output rate, ECB President Lagarde's speech, Eurozone Sentix investor confidence index for November Tuesday (Nov. 8): U.S. House and Senate elections, the Bank of Japan released a summary of the November monetary policy meeting reviewers' views, the eurozone September monthly retail sales rate Wednesday (Nov. 9): EIA releases its monthly short-term energy outlook report, Japan's September trade account, New York Fed President Williams speaks, EIA commercial/strategic crude oil inventories for the week ending Nov. 4 Thursday (Nov. 10): Richmond Fed President Balkin speaks on the U.S. economic outlook, ECB economic bulletin, October CPI, initial jobless claims for the week ending Nov. 5, Philadelphia Fed President Harker speaks on the U.S. economic outlookFriday (Nov. 11): Cleveland Fed President Mester speaks on the U.S. economic outlook, Kansas Fed President George speaks at a conference on energy and the economy, U.K. GDP revised at an annual rate in the third quarter, U.S. preliminary November University of Michigan consumer confidence index
