UPCOMING EVENTS

Monday

BoJ Meeting Minutes

Tuesday

Japan Wage data, Chinese Trade data, RBA Policy Decision, Switzerland Unemployment Rate, Eurozone PPI

Wednesday

Eurozone Retail Sales, BoC Summary of Deliberations

Thursday

BoJ Summary of Opinions, Chinese Inflation data, US Jobless Claims, New Zealand Manufacturing PMI

Friday

UK GPD Q3 Preliminary, University of Michigan Consumer Sentiment

Tuesday

The market’s expectation for a 25 bps rate hike from the Federal Reserve in December is currently priced at 65%. This is up from 62% last week, suggesting a growing confidence in the Fed’s intention to raise interest rates. The FOMC meeting next month will be closely watched by investors for clues on the future path of monetary policy.

Effect on Individuals

If the Fed does decide to raise interest rates in December, it could lead to higher borrowing costs for individuals. This could affect mortgages, car loans, and other forms of credit, making it more expensive for individuals to borrow money.

Effect on the World

A rate hike by the Federal Reserve could have global implications, as it would affect the cost of borrowing in other countries as well. It could lead to capital outflows from emerging markets and put pressure on currencies around the world. Central banks in other countries may also be forced to adjust their own monetary policies in response to the Fed’s actions.

Conclusion

The upcoming events in the global financial markets are crucial for investors and individuals alike. The decisions made by central banks and the release of key economic data will have significant implications for the world economy. It is important to stay informed and be prepared for any potential changes in the financial landscape.