Investing.com Weekly Market Overview

Earnings results and U.S. retail sales numbers will be closely watched this week, providing insights into the economy's strength and implications for Federal Reserve interest rates. The European Central Bank (ECB) is expected to announce a quarter-point rate cut, while China is set to release third-quarter growth figures. Oil prices are anticipated to remain volatile due to demand disruptions and geopolitical tensions. Here’s a look at the key market events for the upcoming week.

1. Q3 Earnings

Earnings season kicked off on Friday with JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) exceeding estimates, causing a surge in their shares. Upcoming reports include Bank of America (NYSE:BAC) and Citigroup (NYSE:C) on Tuesday, and Netflix (NASDAQ:NFLX) after the market closes on Thursday. Investors will pay close attention to Netflix's customer growth metrics, as they provide insight into consumer spending health. Analysts at UBS expect large-cap corporate profit growth to remain robust despite market volatility.

2. U.S. Data and Fedspeak

This Thursday, markets will receive an update on U.S. consumer health via retail sales data, which could indicate stronger-than-expected economic resilience. Recent favorable labor market data led investors to reassess Fed rate cut expectations. The forthcoming remarks from Fed officials including Governor Christopher Waller, Minneapolis Fed President Neel Kashkari, and San Francisco Fed President Mary Daly will also be pivotal.

3. ECB Rate Cut

The ECB is projected to announce another quarter-point rate cut on Thursday, a decision that seemed unlikely after their previous September meeting. Current economic slowdown and easing price pressures have necessitated quicker cuts to bolster the eurozone's economy. Deutsche Bank analysts view this cut as a potential initiation of a faster easing cycle, although they caution that policy decisions will remain data-dependent.

4. China GDP

China’s third-quarter GDP figures, set for release on Friday, are anticipated to be crucial given the recent stagnation in growth. Nevertheless, the government's commitment to achieving an approximate 5% growth target amid aggressive stimulus measures has buoyed market confidence. Additional data on trade, housing prices, and retail sales will provide further clarity on economic challenges heading into year-end.

5. Oil Prices

Oil prices declined on Friday yet marked a gain for the second consecutive week, influenced by potential Middle Eastern supply disruptions and the aftermath of Hurricane Milton on Florida's fuel demand. Both benchmarks ended the week over 1% higher, particularly in light of rising geopolitical tensions following Iran's missile attacks on Israel. Florida's recovery from hurricanes and its reliance on imported fuel pose additional complications, impacting local demand significantly.

(Reported by Reuters)