Key takeaways:

• Local inflation is the thing to watch this week, as the market frets about interest rates and a potential government shutdown in the US

Economic Calendar and News

This week’s agenda is packed with major economic events that promise to keep investors on the edge of their seats:

Monthly CPI Indicator: On Wednesday, the spotlight shines on the monthly CPI indicator. Brace yourself for potential fireworks as higher petrol prices likely contributed to an uptick in local inflation. Forecasts are buzzing with anticipation, suggesting prices grew at an annual rate of 5.2% in August, up from 4.9% in July.

Retail Sales for August: Just a day later, we dive into retail sales for August. The consensus figure points to an exhilarating increase of about 0.3% month-over-month, fueled by higher fuel prices. Get ready for the numbers to ignite the trading floor.

US Government Shutdown Drama: Across the pond, drama unfolds as the White House directs federal agencies to prepare for a government shutdown if it runs out of money. Congress is unable to agree on an extended funding plan for October onwards. The stakes are high, and the financial world watches with bated breath.

PCE Price Index for August: On Friday, the stage is set for the Personal Consumption Expenditures (PCE) Price Index for August, the Fed’s preferred gauge for tracking inflation. Prices are projected to have soared by 0.5% last month, a thrilling leap from the 0.2% in July. On an annual basis, it’s expected to reach a breathtaking 3.5%, compared with 3.2% a month prior. The inflation rollercoaster continues.

Data out of China: Data out of China will be in the spotlight courtesy of fresh readings on industrial profits, as well as manufacturing and services activity.

Stocks on Watch

This week’s stock market is buzzing with action, and these potential movers and shakers are stealing the spotlight:

Star Entertainment (ASX: SGR) Capital Restructure: Casino operator Star Entertainment is making waves with a capital restructure plan that includes hundreds of millions of dollars in debt alongside a major capital raise. It’s a high-stakes gamble that could reshape the company’s future.

Dividend Delights: Shareholders in the likes of BHP (ASX: BHP), Commonwealth Bank (ASX: CBA), Woodside (ASX: WDS), and Fortescue Metals Group (ASX: FMG) will receive dividend payments after trading ex-dividend over recent weeks.

US Earnings Extravaganza: In the US, stocks reporting over the coming days include Costco (NASDAQ: COST), Micron Technology (NASDAQ: MU), Accenture (NYSE: ACN), Nike (NYSE: NKE), and Carnival Cruise Line (NYSE: CCL).

Results Galore: Last but certainly not least, Brickworks (ASX: BKW) and investment firm Washington H. Soul Pattinson (ASX: SOL) both report their FY23 results on Thursday, which follows Soul Patts lifting its stake in fund manager Perpetual.