Take Five: Bangkok blues
SPY•The IMF-World Bank meetings in Bangkok, US inflation data, major bank earnings and Chinese economic figures are among the events on a packed week’s financial calendar. Bond markets remain turbulent, with US and French yields at fresh 24-year highs.
1. Meetings and inflation data
The IMF and World Bank annual meetings take place in Bangkok, with growth, debt and geopolitics in focus. The IMF is due to update its global growth outlook on Tuesday. US September consumer prices are expected to rise 0.6% month on month, while core CPI is forecast to increase 0.2%; producer prices and retail sales are due Thursday.
2. Banks and China figures
Six of the largest US lenders report third-quarter earnings this week, with JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo due Tuesday, followed by Morgan Stanley and Bank of America on Wednesday. Earnings are expected to rise by as much as 20% from a year earlier. China’s September exports are forecast to grow 25.3% year on year, while imports are projected to rise 23.5%.
3. Bond market strain
Strong demand at recent US and Japanese bond auctions has drawn some investors back, but the selloff has continued. US and French bond yields have reached fresh 24-year highs, and the French-German 10-year yield spread is around 136 basis points, compared with less than 100 a month ago.
