Over the past week, the S&P 500 declined 0.3%, while the capitalization of the Nasdaq 100 declined 1%. Investors were disappointed with inflation figures released on Wednesday. The market is closely following US inflation data as they are key to the Fed’s decisions on the future direction of monetary policy. Consumer prices in the United States in October rose by 6.2% compared with the same month last year – the highest rate in almost 31 years (since November 1990). A month earlier, inflation in the US was 5.4%, and experts expected it to accelerate in October to 5.8%. The jump in energy prices in the United States last month amounted to 30% in annual terms, gasoline rose in price by 49.6%. The rate of growth in the cost of foodstuffs, which amounted to 5.3%, was the highest since January 2009. If inflation does not start to ease, the Fed may have to accelerate the pace of winding up its asset repurchase program and move on to hike rates, which will negatively affect the stock market.
The Adipec conference will kick off in Abu Dhabi on Monday, where oil and gas companies and government officials will discuss the energy market. China is to publish October retail sales and industrial production data. Speeches of the heads of regional banks of the Federal Reserve System Thomas Barkin, Esther George, Raphael Bostic, Mary Daly, Patrick Harker will take place on Tuesday. In the US, the October figures for retail sales and industrial production are due. In the eurozone, GDP statistics for the third quarter will be published. Speeches of the members of the Board of Governors of the FRS Michelle Bowman and Christopher Waller, the presidents of the regional banks of the FRS Loretta Mester, Daly are scheduled on Wednesday. In the eurozone, the package of data on consumer prices for October will be released. On Thursday, the US will publish the index of leading economic indicators for the US for October. Fed Vice Chairs Richard Clarida, Daly and Waller will speak on Friday.