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There was a lack of clear impetus on stock markets at the beginning of the week, while the conflict between Spain and Catalonia continues to cause a certain amount of uncertainty in Europe. Investors will now probably focus
on the question of who will be appointed by US President Donald Trump as successor to Federal Reserve President Janet Yellen. Trump will meet with potential candidates this week, although a renewed nomination of Yellen can also not be ruled out. Today, the stock markets are likely to find some impetus when blue chip companies such as IBM, Johnson & Johnson, Morgan Stanley and Goldman Sachs will present their quarterly earnings results.

Sentiment on stock markets remains relatively positive, also thanks to recent solid economic data from the USA, Europe and China. Consumer price data from the US indicated slightly higher inflation in September. Inflation rose from 1.9% in the previous month to +2.2%, with analysts forecasting an even stronger increase to +2.3% on average. Core inflation remained unchanged at +1.7%. In view of the strength of the American economy and the labor market, Fed head Janet Yellen sees further gradual increases in interest rates as appropriate despite low inflation. At the same time, retail sales rose sharply by +1.6% over the previous month, and US sentiment reached its highest level in 13 years, according to an initial assessment of the University of Michigan Monthly Survey in October.

Following new records on Wall Street and despite solid results from US banks, US stock indices consolidated somewhat in the face of waning confidence in Trump’s tax-cut plans and the Fed signaling a more cautious stance. Today, data on consumer price inflation in the US could attract attention after the US Federal Reserve's mid-week report of the last session, published in mid-week, was more cautious about further tightening of key interest rates.