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Daily Agenda: The Week Ahead, October 5 – 10, 2015

Central bank announcements on deck; Canada released unemployment data in the run-up to national elections; Alcoa kicks off earnings season.

Critical rate announcements from the central banks of Australia, Japan and the U.K. will keep bond and currency market participants’ interests piqued in the coming days. Macro statistics out of Canada will give some dimension before the country heads into the home stretch before its national elections and for those economists and financiers of more refined culinary tastes can shift their attention toward northern Italy for an event of more than “truffling” importance.

Monday, October 5: Currency traders will be keeping an eye out for Turkish September consumer inflation data. In August price growth in the country jumped to an annualized 7.14 percent — significantly higher that the official year-end level of 6.9 percent targeted by the Central Bank of the Republic of Turkey. Central bank governor Erdem Basçi has warned that the lira’s 20 percent slide versus the U.S. dollar year-to-date may further exacerbate price increases, though many analysts doubt that the bank will raise rates while growth levels remain depressed.

Tuesday, October 6: After leaving the cash rate at a historic low of 2 percent in September, Reserve Bank of Australia governor Glenn Stevens and his colleagues reiterated that they will remain data dependent. With Australia’s economy showing signs of improvement spurred in part by a declining currency, some analysts now anticipate no additional rate cuts in 2015.

Wednesday, October 7: Despite calls for a new push for structural reform by Japanese Prime Minister Shinzo Abe, economic indicators continue to demonstrate no signs of meaningful recovery for the world’s third-largest economy. As such, investors will carefully await the monetary policy statement from the Bank of Japan as an expansion of the bank’s quantitative easing program becomes more likely.

Thursday, October 8: Alcoa’s quarterly earnings announcement is considered the beginning of earnings season as large-cap companies begin releasing performance data. This particular iteration of the global aluminum producer’s report will garner more attention than usual, however. It will be the first quarterly announcement since Alcoa unveiled its plans this past week to split the corporation into two separate companies: one focused on its traditional business line and the other on high-tech fabrication products.

Friday, October 9: September employment data from Statistics Canada will be closely watched by political as well as financial analysts. With only a little more than a week before Canada’s national elections, the slowing economy north of the border remains the primary campaign topic. Until recently seen as a tight three-way race, recent setbacks for the left-leaning New Democratic Party has seen its popularity wane. This leaves incumbent Prime Minister Stephen Harper’s Conservative Party in a dead heat with the Liberal Party, headed by political legacy Justin Trudeau.

Saturday, October 10: No ordinary fungus, prized Northern Italian white truffles routinely fetch more than $3,500 per pound. In 2014 a four-pound specimen was sold at auction by Sotheby’s for more than $61,000. For investors keen to learn more about the world’s most valuable agricultural commodity, there’s no better place to start than the Alba International White Truffle Fair, which kicks off Saturday. Famed for its truffles, the northern Italian city will play host to dealers, chefs and foodies during the five-week-long event.

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