OvalX weekly diary - 9 September

Written by

OvalX team

Published on

September 10, 2022

What to look out for next week

The major item to watch out for next week is midday on Thursday when the Bank of England is thought to be lifting rates by another 0.50 percent. Both the Federal Reserve and the ECB have recently raised rates by 0.75 percent, and some do still see a chance of a 75bp move by the BoE.

There is otherwise a slim slate of corporate news next week, with only really Oracle and Adobe of any real note. The lack of corporate news is likely to keep the focus on global inflation rates. The US updates the CPI on Monday and PPI on Wednesday, when the UK also updates August inflation rates.

The equity markets have endured a period of nervousness ever since Jerome Powell made his speech at Jackson Hole, undermining the summer optimism. There is a renewed sense of optimism building that inflation may have peaked. Will this be able to gather momentum, or will it evaporate as quickly as the summer rally?

The expectation is that next week buyers will continue to gain confidence on the back of a lack of negative shocks from the inflation rate updates.

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