Top 7 Economic Events Happening This Week | October 3 – 7

🔥 This week is the first week of the fourth quarter (Q4), and there is some key data out in the near days which is relevant for inflation.

✅ On Tuesday, JOLTS Job Openings will be announced. A slight decline is expected after a two-month rise in the indicator.

✅ On Wednesday, the OPEC Meetings is being published. OPEC+ to consider an oil cut of over 1 million barrels per day. This could lead to an increase in the cost of oil.

✅ On Friday will see the release of U.S. employment data. This includes the unemployment rate, non-farm payrolls and average hourly earnings, and are all important metrics to show whether the interest rate increases have affected labor.

📣 But there’s more!

👇 So, let’s take a look at this week’s economic events in more detail

US ISM Manufacturing PMI – Monday, October, 3rd

The US ISM Manufacturing PMI will be released at 17:00 on Monday, October 3.

Asset(s) Affected: USD and US Stocks 🇺🇸

Why is this event important?

The ISM manufacturing index, also known as the purchasing managers’ index (PMI), is a monthly indicator of U.S. economic activity based on a survey of purchasing managers at more than 300 manufacturing firms. It is considered to be a key indicator of the state of the U.S. economy. Through monitoring the ISM Manufacturing Index and comparing it to consensus estimates, investors gain a better understanding of economic trends and conditions.

📈 A higher-than-expected reading is bullish for the stock market, but bearish for the bond market.

📉 The decline of the index negatively affects the stock market (stocks), but positively the U.S. bonds.

JOLTS Job Openings – Tuesday, October, 4th

On Tuesday, October 4, the JOLTS Job Openings will be released at 17:00 GMT+3.

Asset(s) Affected: USD and US Stocks 🇺🇸

Why is this event important?

The job openings and labor turnover survey (JOLTS) is a monthly report by the Bureau of Labor Statistics (BLS) of the U.S. Department of Labor counting job vacancies and separations, including the number of workers voluntarily quitting employment.

The number of vacancies is a widely followed indicator of labor demand, while the quits rate is partly a function of employment demand. Job hires and separations can be used to gauge labor turnover.

📈 Typically, any increase in job openings is good for the United States economy, and therefore you might expect that United States stock indices to increase, and where this is also good for the US dollar.

📉 However, when we see that job openings are lower, this would be negative for the United States economy and also bad for the US stock markets and the United States dollar.

OPEC Meetings – Wednesday, October, 5th

On Wednesday, October 5, the OPEC Meetings will be held throughout the all day.

Asset(s) Affected: Oil 🛢

Why is this event important?

The mission of the Organization of the Petroleum Exporting Countries (OPEC) is to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers.

The OPEC meeting affects traders because oil production quotas for OPEC member states and certain non-voting observers are set during the session. These quotas can have a strong impact on the global supply of oil and influence its price. The quotas set at OPEC meetings can also affect demand in other energy markets, including natural gas and heating oil.

❗ This makes OPEC meetings important dates in some traders’ calendars.

ADP Non-Farm Employment Change – Wednesday, October, 5th

The ADP Non-Farm Employment Change will be released on Wednesday, October 5 at 15:15 GMT+3.

Asset(s) Affected: USD and US Stocks 🇺🇸

Why is this event important?

The ADP National Employment Report is a measure of the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients. The release, two days ahead of government data, is a good predictor of the government’s non-farm payroll report.

📈 A rising ADP is a market mover for the USD due to the fact that employment levels are a key driver of aggregate economic growth.

📉 A lower-than-expected ADP’s number is commonly interpreted as bearish for the USD, while a high number is bullish.

ISM Services PMI – Wednesday, October, 5th

The ISM Services PMI will be released on Wednesday, October 5 at 17:00 GMT+3.

b USD and US Stocks 🇺🇸

Why is this event important?

The ISM Services PMI (formerly the ISM non-manufacturing index) provides for a detailed look at the economy from a non-manufacturing standpoint.

The non-manufacturing PMI takes into account the business conditions in the services sector, such as employment, production, new orders, prices, and inventories, to determine whether the industry expanded or contracted during the month.

❗ A reading above 50.0 indicates industry expansion, while a reading below 50.0 reflects a contraction.

ECB Monetary Policy Meeting Accounts – Thursday, October, 6th

The ECB Monetary Policy Meeting Accounts will be released on Thursday, October 6 at 14:30 GMT+3.

Asset(s) Affected: EUR and DAX 🇪🇺

Why is this event important?

The ECB Monetary Policy Meeting Accounts cover the monetary policy meetings of the Governing Council, normally held every six weeks. They include a review of financial, economic and monetary developments and policy options as well as a summary of the discussions and decisions.

Depending on opinions expressed by Council members and general rhetoric, analysts can make assumptions on when the interest rate will change next time and what short-term monetary policy measures can be expected.

❗ Generally, to increase inflation to the target level, the ECB may weaken euro quotes by cutting the interest rate and pursuing monetary easing. Conversely, in order to slow down inflation, the regulator may raise interest rates and tighten monetary policy.

NFP Friday – NFP, Unemployment Rate, Average Hourly Earnings – Friday, October, 7th

NFP Friday (NFP, Unemployment Rate, Average Hourly Earnings) will be released on Friday, October 7 at 15:30 GMT+3.

Asset(s) Affected: 🇺🇸 USD and US Stocks.

Why is this event important?

The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It represents the number of jobs added, excluding farm employees, government employees, private household employees and employees of nonprofit organizations.

This Friday, we have several important releases in the NFP series, including the unemployment rate and average hourly earnings.

📈 If the data improve compared to last month, it will have a positive effect on the US stock market.

📉 Lower than expected NFT data could have a negative effect on the US stock market.

That’s it for this week! 👋