Take five: AI trade meets the Fed
SPY•The week ahead brings policy decisions from the Federal Reserve, European Central Bank and Bank of Japan, alongside third-quarter results from Alphabet, Microsoft and Amazon. Investors will also watch Britain’s budget, Israel’s election and a gathering of China’s top leadership.
1. Central banks and earnings
The Federal Reserve, Bank of Canada and Reserve Bank of New Zealand meet Wednesday, the European Central Bank on Thursday and the Bank of Japan on Friday. Markets expect Canada and New Zealand to raise rates, while policymakers are also weighing how high oil prices could feed broader inflation. Alphabet, Microsoft and Amazon are among the companies reporting results as investors assess spending on data centres; about one-third of S&P 500 companies are due to report.
2. Budgets and elections
British finance minister John Healey will present his first budget Wednesday, seeking to help households facing higher energy prices without unsettling the bond market through increased borrowing. Analysts polled by Reuters expect fiscal headroom could narrow to around £15 billion. Israel votes Tuesday, with polls pointing to a close contest and no expected majority for either main bloc; the article says Israeli stocks have risen more than 135% since the October 7, 2023 attacks, and the shekel has gained 25%.
3. China leadership gathering
China’s top leadership meets in Beijing for the four-day Fifth Plenum from Monday. The gathering will address Party discipline and execution as China faces external challenges, including tensions with the United States and curbs on access to advanced foreign technology, as well as weak domestic demand.
