Here are five big things happening this week;
On Wednesday, the People's Bank of China will carry out the continuation of MLF. After the Federal Reserve cut interest rates, China did not lower its interest rates in September. Minsheng Securities said that history shows that the pace of domestic monetary easing may be slightly later than overseas. It is expected that domestic reserve requirement ratio cuts and reverse repurchase or MLF interest rates will be followed, which may precede or follow closely the adjustment of existing mortgage interest rates.
On Thursday, the United States announced the final annualized quarter-on-quarter GDP and core PCE price index for the second quarter. The previously announced revised values showed that U.S. GDP rose significantly in the second quarter and PCE expenditure growth unexpectedly surged, indicating that the economy and consumption are still resilient.
On Friday, the election for the president of Japan's ruling Liberal Democratic Party kicked off, and the new president will succeed Fumio Kishida as Japan's prime minister. There are nine candidates for the Liberal Democratic Party election, the highest number in history. Voting and counting in the first round of the election are scheduled to be held on the 27th. It is expected that no one will get more than half of the votes.
On Friday, the United States will release the PCE price index for August. Bank of America expects U.S. PCE inflation to be encouraging in August, but given that the Federal Reserve has made it clear that it is more concerned about the labor market situation.
On Friday, Federal Reserve Chairman Jerome Powell will open an event and speak out publicly for the first time since the central bank cut interest rates by 50 basis points for the first time in four years. Investors focused on the possible stance on the path of interest rate cuts during the year in his speech.
