This week we have a normal economic calendar. Earnings are still strong with some warnings. and the Midterm election is Tuesday. Most polls are showing a split decision where the Democrats will win more than the 20 seats needed to take control of the House of Representatives and, the Republicans will continue to control the Senate. Along with he global spotlight, there are many warnings out there that can cause the market to roll over and test some near-term support.
Looking at the Economic calendar: ISM services offers an early economic read. JOLTS, a Trailing indicator of data, but offers the best indicator of the labor market. On Wednesday, the FOMC will deliver its rate decision, which will not be a surprise. More earnings will be out this week, the season is almost over.
This week the election will take center stage. On Tuesday, join me is staying up late and watching the returns.
Global Spotlight
Mixed Signals From the White House on China. U.S. President Donald Trump has raised the idea of a trade deal with China in the offing, but we’re taking this possibility with a grain of salt.
CPTPP Crosses the Finish Line. With Australia’s ratification, the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) will see the pact’s first round of tariff cuts in 60 days.
… And More Hurdles Ahead in U.S. Trade Talks. The CPTPP’s implementation despite the U.S. pullout puts Washington’s array of bilateral trade negotiations in the spotlight.
A Prominent Prince Returns to the Kingdom. The return of Prince Ahmed bin Abdulaziz (one of the last living sons of Saudi Arabia’s founder) to Saudi Arabia this week from his self-exile in London raises an important question about what role — either formally or informally — he will play in balancing against Crown Prince Mohammed bin Salman.
Sanctions Are Coming. U.S. sanctions on Iran’s oil exports take effect Nov. 5 and the White House is showing a slight reprieve for at least eight countries (including China, India, Iraq, Japan, South Korea and Turkey) to continue importing some Iranian oil for a limited time while they continue to draw down purchases.
A Crisis in Sri Lanka Reveals Sino-Indian Tussle. Sri Lankan President Maithripala Sirisena abruptly replaced Prime Minister Ranil Wickremesinghe with former pro-China President Mahinda Rajapaksa on Oct. 26.
Stratfor.com
Economic Calendar
Here isa a list of the U.S. economic events happening this week.
Briefing.com
Review Last weeks numbers here.
Earnings
Thomson Reuters I/B/E/S
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