Key Economic Indicators To Watch This Week: US Data, Japan Elections, And Microsoft’s Bitcoin Bet
Key Takeaways
- U.S. economic data like GDP and PCE will be released this week.
- Japan is in the middle of political and monetary turmoil.
- Eyes will turn to Microsoft’s potential investment in Bitcoin.
This week promises to be crucial, marked by a confluence of significant economic indicators and political developments.
From the U.S. to Japan, economic data and political developments will shape global markets and influence investment strategies.
On the crypto side, the focus shifts to Microsoft’s evaluation of a possible bet on Bitcoin.
U.S. Data In Focus
This week, a slew of key economic data releases will provide crucial insights into the health of the U.S. economy.
Tuesday’s consumer confidence index for October is expected to tick up to 99.2, building on September’s 98.7 reading, as American consumers increasingly express optimism about the economy.
The September Job Openings and Labor Turnover Survey (JOLTS) may reveal a decline in job openings, slipping to 7.9 million from 8.0 million, hinting at a potential softening in the labor market.
On Wednesday, Oct. 30, the U.S. GDP growth rate is expected to hold steady at 3.0%. The core PCE price index, the Federal Reserve’s preferred inflation gauge, will also be closely watched.
Friday’s employment data will be parsed for signs of strength or weakness.
Average hourly earnings are seen rising 0.3% month-over-month, down from 0.4% in September.
The non-farm payrolls figure may post a significant drop, with only 111,000 jobs added compared to 254,000 in the previous month. The unemployment rate is expected to remain steady at 4.1%.
The ISM manufacturing PMI for October is projected to inch up to 47.5 from 47.2, suggesting a modest improvement in manufacturing conditions.
Japan Vote And BoJ
Focus will also shift to Japan, where the ruling Liberal Democratic Party (LDP) has lost its parliamentary majority and achieved its worst result in over a decade.
The LDP and its coalition partner, Komeito, secured 215 seats, falling short of the 233 needed to govern. New leader Shigeru Ishiba, who called the election just before taking office, has vowed to remain in charge despite the setback.
Ishiba acknowledged voters’ “severe judgment” and promised to reflect on the party’s actions. He faces pressure to address issues of money and politics, especially after a series of scandals and low approval ratings, which dipped below 20% earlier this year.
The main opposition party, the Constitutional Democratic Party (CDP), won 148 seats but struggled with unity and public support. Its approval rating was just 6.6% before the election. CDP leader Yoshihiko Noda plans to collaborate with other parties to challenge the incumbents.
It will be a crucial week for Japan, both politically and monetarily. In fact, on Friday, the Bank of Japan will decide whether to increase or maintain interest rates.
Microsoft Bets On Bitcoin
On the crypto side, eyes will turn to Bitcoin (BTC) after the tech giant Microsoft said it is considering investing in the world’s largest cryptocurrency. The shareholders will vote in December on this conservative National Center for Public Policy Research proposal .
The center argues that Bitcoin is an excellent hedge against inflation. However, Microsoft‘s board opposes the proposal, deeming it unnecessary. The company has already carefully evaluated cryptocurrency investments, including Bitcoin, and will continue to monitor the market.
Michael Saylor, CEO of MicroStrategy, a major Bitcoin holder, has encouraged Microsoft CEO Satya Nadella to seek advice on potential cryptocurrency investments.
Major shareholders like Vanguard, BlackRock, and State Street will have a say in the final decision.
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