Latest news updates: UK Covid-19 infections hit highest level on record
Personal consumption expenditure: The PCE index is the Federal Reserve’s preferred measure of inflation, and the latest data will be closely followed ahead of the central bank’s policy meeting on November 3. The core PCE index, which excludes volatile components such as energy and food, is expected to have risen 0.2 per cent in September following a 0.3 per cent increase in August, according to a Refinitiv poll of economists. That should push the year-on-year increase to 3.7 per cent.
Big Oil: Investors will be watching just how well the recent jump in oil prices to seven-year highs has played out for ExxonMobil and Chevron, which both report earnings before Wall Street’s opening bell. Exxon is expected to report net income of more than $6.5bn, a level not reached since 2016, according to Refinitiv. Chevron’s net profit is expected to come in at more than $4.2bn, also its highest level in years.
US earnings: Newell Brands, the company behind Sharpie marker pens and Sunbeam appliances, reports before the bell, as does Colgate-Palmolive. They are set to join a growing list of companies shedding light on the strength of consumer demand and the impact of supply chain disruption. Royal Caribbean Cruises is expected to report a leap in revenue for its third quarter, when it was able to begin sailing in the US again after a lengthy hiatus during the pandemic.
Consumer sentiment: The University of Michigan’s reading on consumer sentiment is expected to hold steady at 71.4 in October, unchanged from the previous month. Consumer sentiment is thought to have been damped in recent weeks and months by rising inflation, which is eroding purchasing power, however some economists believe a historically high savings rate could still fuel spending sprees.
Mexico GDP: Economic growth in Mexico is forecast to have increased 6 per cent on an annualised basis during the three months to September quarter, moderating from 19.6 per cent pace three months earlier, according to Refinitiv.
Colombian interest rates: Colombia’s central bank is expected to increase its benchmark borrowing rate by 0.25 percentage points to 2.25 per cent, keeping it in a group of Latin American economies that are ratcheting up rates in an effort to tame inflation. The Banco de la República’s board in late September announced the first interest rate increase since 2016.