More up-to-date labour and price figures are not due until next month and concern over the data’s quality as well as hawkish policymaker comments has expectations for a rate cut in December fading.
The main event for markets this week is likely Nvidia (NVDA.O), opens new tab earnings after the close on Wednesday, which are shaping as a test for the artificial-intelligence bull run.
Analysts on average expect the company to post a 53.8% year-over-year rise in fiscal third-quarter earnings per share, according to LSEG, and they have been getting more optimistic about future revenue – leaving the company with a lot to beat.
In Asia on Monday, markets struck a cautious tone, sending the dollar up a little bit, while the deepening diplomatic disagreement between China and Japan hit stocks in Tokyo.
A row erupted after Japan’s Prime Minister Sanae Takaichi told lawmakers a Chinese attack on Taiwan could threaten Japan’s survival and potentially trigger a military response.
A senior Japanese diplomat will head to China on Monday to try to calm things down, Japanese media reported. A separate Japanese news report on plans for a $110 billion government-spending stimulus package put pressure on Japanese bonds.
Nvidia share performance in 2025, compared to tech sector and S&P 500
Key developments that could influence markets on Monday:
– Canada inflation data
– Delayed U.S. construction data; November Empire State manufacturing survey
– Fed’s Williams, Jefferson, Kashkari and Waller
Reporting by Tom Westbrook; Editing by Muralikumar Anantharaman
