Big events for the next week: What investors should focus on to rebalance their portfolios

For the week ended 17^th November 2023, the global indexes ended on a higher note as Nasdaq Composite saw an increase of ~2.76% and Dow Jones went up by ~2.01%. While Nasdaq-100 saw an increase of ~2.38%, S&P 500 Index was up by ~2.44%. Much of these increases were seen due to the favourable inflation report and the expectations that the US Federal Reserve will soon start to cut the interest rates. While there are several big events for the next week, overall the indexes are expected to impacted by the consumer sentiments and geopolitical developments. 

On Tuesday, the FOMC meeting minutes might be the focus point for the traders and investors. In his last speech, the US Federal Chair Powell mentioned that there might be more work to do in a bid to bring down inflation. However, in the week gone by, the inflation and retail sales figures suggested that there might not be any need to increase the interest rates. Therefore, the minutes might reveal more about what the US Federal Reserve wants and what is needed to bring the inflation down to reasonable levels. 

Then, as week will move forward, core durable goods and jobless claims should attract attention from the global market analysts. One more increase in jobless claims will further affirm that the labour market continues to weaken. However, Michigan consumer sentiment figures should be given consideration. In case of upward revisions to the expectations about inflation downward revisions to sentiments might hint that consumers’ spending will be weaker. These are the big events for the next week which should decide the overall market mood.

Finally, the week is expected to be wrapped up by prelim private sector PMIs for the month of November. The focus should be on the services PMI because services sector make up for over ~70% of the overall US economy. Apart from the numbers, investors should consider the US Fed speeches across the week. 

While above are some of the big events for the next week, currency traders should know that this can be the volatile week for the pound. On Wednesday, Bank of England Financial Stability Report is slated to be released and should be in focus. If there are concerns regarding the lending and higher defaults, this will signal the slowdown in the macro-economic environment. Apart from this, UK Autumn Statement will need some attention. 

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