Key takeaways:

• For the first time in some months, traders expect headline US inflation data to inch upwards, albeit core prices may have continued to moderate

Economic Calendar and News

This week’s economic agenda is laden with significant events:

Unemployment Focus: The national unemployment report will take center stage on Thursday. Economists anticipate a slight drop in the jobless rate to 3.6%, assuming the economy added 25,000 jobs last month.

Sentiment and Confidence: Prior to that, keep an eye out for readings on consumer sentiment and business confidence on Tuesday. Both are likely to reflect ongoing concerns about the direction of the local economy.

US Consumer Price Index: Arguably the most critical data point of the week is the US Consumer Price Index (CPI) for August. Headline inflation is forecasted to increase from 3.2% to 3.6%, driven by higher gas prices, while core inflation may ease from 4.7% to 4.3%.

A Plethora of US Data: Other essential US data releases this week encompass retail sales for August, jobless claims, the Producer Price Index (PPI), manufacturing activity, industrial production, and a fresh gauge of consumer sentiment in the world’s largest economy.

ECB Meeting: Further abroad, the European Central Bank meets on Thursday, with markets speculating on the possibility of another rate hike, albeit at just under a 40% likelihood.

Stocks on Watch

Several potential stock movements are worth monitoring this week:

Apple’s Product Launch: Tech giant Apple (NASDAQ: AAPL) will host its latest product launch event on Tuesday US-time. Expectations are high, with the anticipated unveiling of the iPhone 15 and iPhone 15 Pro, along with potential surprises like the Apple Watch Series 9, Ultra 2, and more.

Auto-Makers in Focus: US auto-makers such as Ford (NYSE: F), General Motors (NYSE: GM), and Stellantis (NYSE: STLA) will be in the spotlight as they navigate employee union negotiations. There’s a looming threat of strikes if labor contracts expire on Thursday.

Earnings Reports: Adobe (NASDAQ: ADBE) and Oracle (NYSE: ORCL) are scheduled to report earnings this week. While enterprise IT spending has generally slowed down, observers will be closely watching whether these companies are bucking the trend and how artificial intelligence (AI) factors into their outlooks.

Arm’s IPO: British semiconductor firm Arm (NASDAQ: ARM) is set to complete an IPO in the US later this week. This marks the largest listing in approximately two years, with a valuation expected to surpass US$50 billion once finalised on Wednesday.