The US midterm elections could reshape the political landscape and influence market sentiment. Democrats are widely expected to win the House of Representatives, while control of the Senate remains uncertain. The outcome could affect AI regulation, fiscal spending and sectors such as defence and healthcare. (Source: Reuters)
Investors will closely track Friday's October non-farm payrolls report for signals on the health of the US labour market and the Federal Reserve's next move. The economy added just 29,000 jobs in September, while unemployment stood at 4.2%. Markets were pricing in an 80% chance of a December rate hike, according to Reuters.
Earnings from Apple, Qualcomm and Advanced Micro Devices will test investor confidence in the artificial intelligence trade. Disappointing results from Alphabet, Amazon and Intel have already triggered sharp share-price declines, raising questions about whether massive AI investments will deliver adequate returns.
The Reserve Bank of Australia, Sweden's Riksbank and the Bank of England are scheduled to announce policy decisions this week. Markets expect all three to raise interest rates amid persistent inflation risks. Norway's central bank is also due to meet after delivering two rate increases this year.
Brazil's election-driven volatility has complicated its monetary easing cycle. The real and equities reversed earlier gains following the presidential runoff, putting the central bank's upcoming policy decision under scrutiny. Investors will also watch President Luiz Inacio Lula da Silva's choice of finance minister for clues about future fiscal policy.