Proactive Investors - Next (LON:NXT) week brings key updates on the macroeconomic front in the form of inflation figures from the US and UK gross domestic product data.
Wednesday’s consumer price index reading from across the Atlantic will come as markets weigh the chance of an interest rate cut by the Federal Reserve later in the month.
Expectations are for a further increase in headline inflation to 2.7% through November, following October’s 2.6% rise.
“Without an upside inflation surprise,” anticipations will remain for a 25 basis point rate cut in the Fed’s November meeting, IG analysts commented.
Back in the UK, gross domestic product data for October will be the focus on Thursday, after the economy unexpectedly contracted by 0.1% in September.
According to Trading Economics, forecasts are for growth of 0.2% over the month, reflecting a 1.6% uptick on an annual basis.
“We expect services activity to inch higher in October - but only just,” Deutsche Bank (ETR:DBKGn) said, “and we see some modest gains in industrial production and construction output”.
Next week will also feature the European Central Bank’s latest interest rate call, alongside consumer confidence and RICS house price data from the UK.