The new trading week is likely to continue to be dominated by the ongoing reporting season. In addition to possible impetus from speeches by various Fed representatives, the focus should be on important US economic data. An important question could be whether the interest rate cut fantasies for this year remain alive. It is also important to keep an eye on developments between China and Taiwan.
Monetary policy hints from Fed representatives conceivable - "Beige Book" in view on Wednesday evening
On Monday, speeches by Fed members Kashkari (Minneapolis/19:00) and Schmid (Kansas/23:05) could be the first movers.
FOMC member Harker is expected to speak on Tuesday (16:00) and Governor Bowman (15:00) and Barkin (Richmond/18:00) on Wednesday.
In the middle of the week, the publication of the so-called "Beige Book" comes into focus (20:00), which provides an overview of the current economic situation. Economists and other experts will be interviewed.
Important US data is likely to attract attention in the second half of the week
The weekly initial claims for US unemployment benefits are usually on the agenda on Thursday afternoon (14:30).
In addition to a speech by Hammack (Cleveland/14:45), the S&P purchasing managers are also likely to be of interest (15:45).
On Friday, investors will be looking ahead to important US economic data, which could provide an important indication of the US economy. New orders for durable goods are expected to fall by 0.9%, compared to 0% in September (compared to the previous month). As these products are generally associated with large investments, they can provide an indication of US production activity.
Consumer confidence from Reuters/Uni Michigan (16:00) is also likely to attract interest.
Tensions between China and Taiwan could increase further - Coca-Cola, Tesla and IBM present quarterly figures
However, the increasing tensions between China and Taiwan are hovering over investors' heads like a classic sword of Damocles. The military maneuvers recently held by the Chinese off the island republic of Taiwan are likely to be seen as an alarm signal. An escalation could also have an impact on global supply chains.
There could also be plenty of movement as the US reporting season continues to gather pace. On Wednesday, for example, AT&T, Boeing and Coca-Cola will report in the pre-market. After the close of trading, investors will be looking at the figures from Tesla and IBM, for example.
