Yesterday stocks took a sharp turnaround after falling drastically due to the inflation data, which was worse for September than investors initially anticipated. All three American indexes, alongside with the FTSE 100 and the DAX, were green in the final hour of Thursday’s trading session.

Yesterday’s consumer price index practically forces the Federal reserve to continue with its rate increases when it meets next month, this is in order to tame the hot inflation. From the meeting minutes earlier in the week it was already clear that the members are motivated to be as aggressive as possible. 

Meanwhile in the UK, fiscal situation remains uncertain, especially as the Bank of England feels the need to intervene with support for the gilt market. The prime minister is due a discussion with the chancellor who has returned early from New York, creating more concerns about the current situation. Sterling has rallied versus the dollar on prayers that a budget U-turn might be announced, increasing pressure on the UK government.  

Ahead in today’s session, investors will closely be monitoring retail sales and consumer sentiment data, As well as earnings from major financial institutions.  

Things that can affect Friday’s markets: 

Retail sales

1. Retail sales data for September is due to be release at 13:30 GMT. Experts esitmate the month-over-month gain to increase by 0.2% (investing.com).

Big Bank earnings  

UnitedHealth earnings