Earnings season will broaden this week, with Meta, Tesla, Netflix, Procter & Gamble and American Express reporting. Flash PMIs will test whether growth in the US, Europe and Asia can withstand higher rates and energy costs.

Rates Up, Earnings Next

US services ISM and consumer sentiment will test the resilience of activity as higher energy prices and borrowing costs weigh on households.

US labour markets take centre stage: September payrolls, JOLTS and ADP will test hiring momentum, while ISM manufacturing and consumer confidence will gauge the resilience of activity and spending.

The Fed will take centre stage, with markets pricing a roughly 90% chance of a rate hike after the August core CPI surprise.

The ECB will take centre stage in Europe, with a 25bp rate hike widely expected, further widening the policy gap with the Fed.

The US labour market will take centre stage, with the jobs report set to test whether recent signs of resilience in activity can coexist with still-firm inflation.

Jackson Hole will take centre stage, with Fed Chair Warsh and his global peers expected to shed light on the policy outlook amid elevated long-end yields and lingering trade and inflation uncertainty. Investor focus will then turn to US PCE inflation, the Fed’s preferred gauge so far, alongside income and spending data for further evidence on the resilience of the US consumer.