Top indicators and events that will impact the economy this week, Oct 27-Nov 2

The Federal Reserve will make its monetary policy announcement on Thursday at 2am (local time) after a two-day meeting of the US central bank's Federal Open Market Committee . -- PHOTO: AFP
The Federal Reserve will make its monetary policy announcement on Thursday at 2am (local time) after a two-day meeting of the US central bank's Federal Open Market Committee . -- PHOTO: AFP

The highlight this week is likely to be the Federal Reserve's monetary policy announcement due at 2am on Thursday (local time) after a two-day meeting of the US central bank's Federal Open Market Committee (FOMC).

The Fed has indicated it will end a massive bond-buying programme aimed at lowering long-term borrowing costs this month, but a recent slate of mixed US data has thrown into question the strength of the world's biggest economy. Policy makers in September cut the monthly pace of Treasury and mortgage-bond purchases to US$15 billion from an initial rate of US$85 billion two years ago. The FOMC is also expected to leave the US benchmark interest rate at zero to 0.25 per cent, where it has been since 2008.

Also on Thursday, the US Commerce Department will release its first estimate of US economic growth in the third quarter of this year. Economists surveyed by Bloomberg News predict that gross domestic product (GDP) grew 3 per cent in the three months to September, down from 4.6 per cent in the previous quarter.

Japan will release a slate of key data this week including industrial production for September on Wednesday. Tokyo downgraded its assesment of the economy after factory output unexpectedly fell 1.9 per cent in August.

Japan, which fears not meeting its inflation target, also reports consumer prices for September on Friday after core inflation, excluding the temporary effect of a sales-tax increase, slowed to 1.1 per cent in August. Bank of Japan Governor Haruhiko Kuroda has said there is "no possibility" that core inflation would fall below 1 per cent.

The culimination of a busy week for Tokyo is the Bank of Japan's monetary policy meeting on Friday that will be widely watched. Economists expect the BOJ to cut its GDP and inflation forecasts. The GDP growth forecast for the current financial year, which now stands at 1.0 per cent, could be slashed to about 0.5%.

China releases on Saturday its official manufacturing purchasing manager's index (PMI) for October, a closely watched gauge of economic activity. A private PMI survey by HSBC, released last week, showed a rise to 50.4, a mild improvement from September's 50.2 as a property slump continues to weigh on the world's second-largest economy.

(all times are local)

MONDAY, 27 OCT

5:30pm: Germany Ifo business confidence index for Oct

9:45pm: US Markit flash services PMI (PMI) for Oct

10:00pm: US pending home sales for Sept

TUESDAY, 28 OCT

7:50am: Japan retail sales for Sept

8:30pm: US durable goods orders for Sept

9:00pm: S&P/Case-Shiller US home price index for Aug

10:00pm: US consumer confidence index for Oct and Richmond Fed manufacturing index for Oct

WEDNESDAY, 29 OCT

7:50am: Japan industrial production for Sept

5:00pm: European Central Bank's Q3 bank lending survey

THURSDAY, 30 OCT

2:00am: Federal Reserve's FOMC announcement

8:30pm: US 3Q GDP data

FRIDAY, 31 OCT

7:30am: Japan consumer prices for Sept

Time unspecified: Bank of Japan monetary policy, GDP and inflation announcements

10.00am: Singapore bank lending for September and preliminary unemployment Q3

8:30pm: US personal income & spending for Sept

SATURDAY, 1 NOV

9:00am: China official manufacturig PMI for Oct

SINGAPORE TOP CORPORATE EARNINGS FOR RELEASE:

Tuesday, Oct 28: City Developments Q3, STATS ChipPAC Q3

Thursday, Oct 30: United Overseas Bank Q3, Indofood Agri Resources Q3

Friday, Oct 31: DBS Group Holdings Q3, Neptune Orient Lines Q3