Your Week Ahead – Trump’s Health, Global Market Updates, and Key Events

Your Week Ahead – Trump’s Health, Global Market Updates, and Key Events

Last week, the world was taken aback as U.S. President Donald Trump and First Lady Melania Trump tested positive for COVID-19. Following the news, markets responded with heightened volatility, swinging between concerns about Trump’s health and hopes for stability. Here’s what to expect this week.

Trump’s Health and Market Volatility

President Trump’s health condition remains a major market mover. Despite mixed reports from White House physicians, Trump has reportedly continued his duties from Walter Reed Medical Center, focusing on finalizing a second stimulus package. However, uncertainties surrounding his health could lead to significant volatility in U.S. equities and the dollar.

• COVID-19 Treatments: Trump received Regeneron’s experimental antibody drug, along with Remdesivir and dexamethasone.
• Market Reaction: Futures dropped sharply before rebounding on positive health updates.

Key Market Events to Watch

Monday, October 5 – Wednesday, October 7
US ISM Non-Manufacturing Index: Expected at 56, slightly down from 56.9. A weaker-than-expected figure may weigh on the dollar.
Fed Chair Powell Speech & FOMC Minutes: Powell is likely to advocate for more fiscal stimulus to support the economy. A dovish tone could impact U.S. equities, especially amid weak fundamentals.

Tuesday, October 6 – Australia’s RBA Decision and Budget
Australia’s Reserve Bank is set to release its interest rate decision, with rates expected to remain at 0.25%. Speculation around quantitative easing or future rate cuts will be key.
Trans-Tasman Bubble: Talks of limited travel between New Zealand and Australia highlight cautious optimism about economic recovery.

Wednesday, October 7 – ECB President Lagarde Speech
President Christine Lagarde is expected to address the potential implementation of a digital euro and its role in modernizing Europe’s economy.
Digital Euro: A centralized or decentralized system may emerge, with a decision anticipated after mid-2021 public consultations.
Economic Outlook: Lagarde will likely comment on the euro’s recent strength and its impact on the region’s recovery.

Thursday, October 8 – Canada’s Unemployment Rate & BoC Speech
Governor Tiff Macklem of the Bank of Canada will speak on the central bank’s continued efforts to support the economy through low interest rates and quantitative easing.
Rates: Currently at 0.25%, with no changes expected until inflation targets are met.

Summary of Key Takeaways

• Trump’s health remains a wildcard, driving market uncertainty.
• Central bank updates from the U.S., Australia, Europe, and Canada will provide insights into global recovery efforts.
• The ECB’s digital euro plan could be a long-term game changer.

Stay prepared for a volatile trading week as markets digest evolving political and economic developments.