The Trump-Xi Meeting, PMI, and the Costco Earnings Report: What Investors Should Expect This Week
U.S. President Donald Trump's trip to China in May did not resolve the uncertainty in relations with Beijing / Photo: The White House
The meeting between Donald Trump and Xi Jinping at the White House will be the main political event of the week. Investors’ attention will remain focused on Washington, but it will shift from the Federal Reserve’s (Fed) decisions to the talks between the leaders of the U.S. and China, according to Barron’s.
Preliminary September Purchasing Managers' Index (PMI) figures will provide insight into the state of the U.S. economy, as investors assess the likelihood of further interest rate hikes by the Fed. Similar data will also be released for the eurozone.
Japan's financial markets will be closed from Monday through Wednesday due to public holidays.
Six companies in the S&P 500 index are set to report earnings this week, including General Mills and Costco Wholesale.
On Monday, September 21, the People’s Bank of China kept interest rates at record lows for the 16th consecutive month, according to Trading Economics. The decision was in line with expectations: the one-year LPR, the benchmark for most loans to businesses and individuals, remained at 3%, while the five-year LPR, used to calculate mortgage rates, stayed at 3.5%.
The Chinese regulator left interest rates unchanged, despite the yuan's appreciation and rate hikes by some other central banks. According to Trading Economics, the decision reflects caution regarding the consequences of the conflict in the Middle East. At the same time, demand related to artificial intelligence continues to provide significant support for Chinese exports.
On Tuesday, September 22, the eurozone will release a preliminary estimate of consumer confidence for September.
AutoZone and KB Home will report their quarterly results.
On Wednesday, September 23, S&P Global will release preliminary September business activity indices for the U.S. manufacturing and services sectors. Analysts expect averages of 53.6 and 56 points, respectively—both figures are about half a point lower than August’s readings.
These indices are calculated based on surveys of purchasing managers and will show how the recent spike in oil prices is affecting U.S. companies, according to The Wall Street Journal. Rising oil prices were one of the key factors that prompted the Fed to raise interest rates at its last meeting. Signs of economic resilience could reinforce expectations of further monetary tightening, which Fed officials have already signaled.
Preliminary PMI indices for September will also be released in the eurozone. They will provide insight into trends in the manufacturing and services sectors. “Unexpectedly strong growth over the summer made it easier for the ECB to tighten monetary policy. It will be interesting to see if growth accelerates, especially in manufacturing,” analysts at Danske Bank wrote in a report cited by the WSJ.
Cintas, General Mills, and Paychex will report their financial results.
On Thursday, September 24, talks between Donald Trump and Xi Jinping are scheduled to take place at the White House. The leaders of the world’s two largest economies are expected to discuss tariffs, trade agreements, the war in Iran, Taiwan, and artificial intelligence security, according to Barron’s. Their previous meeting took place in May in Beijing. To date, the two sides have agreed to halt further escalation of the trade war.
Costco Wholesale and Darden Restaurants will report their quarterly results.
On Friday, September 25, the U.S. Census Bureau will release August data on durable goods orders. The consensus forecast calls for a 0.3% decline in new orders, following a 1.1% increase in July.
This article was AI-translated and verified by a human editor
