This week, the global markets are following the midterm elections of Congress. The focus will be on a number of central banks, waiting for their interest rates decisions and a number of important economic data in some major economies.
The most important economic data and events this week are:
Australian Interest Rate Decision
The Reserve Bank of Australia announces its interest rate decision early tomorrow morning and the Australian Reserve is widely expected to keep interest rates unchanged at 1.5%. The bank has not changed interest rates since mid-2016 and remained neutral, expressing concern about global economic growth.
Congressional midterm elections
The political climate is set to dominate the US sky this week as investors await congressional midterm elections next Wednesday. Preliminary polls show Democrats are on their way to control the House of Representatives. Republicans, on the other hand, are likely to retain a majority in the Senate.
Also, markets will be on Wednesday with the Fed's decision, which is widely expected to keep interest rates unchanged at 2.25%.
New Zealand interest rate decision
The Reserve Bank of New Zealand is expected to keep interest rates unchanged at 1.75%. The New Zealand Reserve is the only central bank in the major economies expectations was for a rate cut, but some economic data have kept it neutral for the time being.
Also, employment figures are due for the third quarter of 2018. Employment is expected to grow by 0.5% and unemployment to fall to 4.4%.
Growth data in the UK
The British economy grew by 0.4% in the second quarter of 2018, and the economy is expected to continue to grow in the third quarter of the year by 0.6%, amid the uncertainty surrounding Brexit negotiations.
