5 key global market themes investors will watch this week

The economy added just 29,000 jobs in September, while unemployment stood at 4.2%. Markets were pricing in an 80% chance of a December rate hike, according to Reuters. Earnings from Apple, Qualcomm and Advanced Micro Devices will test investor confidence in the artificial intelligence trade. Disappointing results from Alphabet, Amazon and Intel have already triggered sharp share-price declines, raising questions about whether massive AI investments will deliver adequate returns.

The Reserve Bank of Australia, Sweden's Riksbank and the Bank of England are scheduled to announce policy decisions this week. Markets expect all three to raise interest rates amid persistent inflation risks. Norway's central bank is also due to meet after delivering two rate increases this year. Brazil's election-driven volatility has complicated its monetary easing cycle. The real and equities reversed earlier gains following the presidential runoff, putting the central bank's upcoming policy decision under scrutiny.

Investors will also watch President Luiz Inacio Lula da Silva's choice of finance minister for clues about future fiscal policy. Indonesia's third-quarter GDP figures will provide fresh insights into economic momentum in Southeast Asia's largest economy. Investors are watching for signs of economic strain as the rupiah trades near record lows, amid concerns over government policies and President Prabowo Subianto's ambitious 8% growth target.

Earnings from European automakers, including BMW, Daimler and Ferrari, will offer insights into the impact of US tariffs and elevated energy costs linked to the Iran war. Investors will assess how these pressures are affecting business performance and corporate outlooks. Results from Lufthansa, Ryanair and International Consolidated Airlines Group, owner of British Airways, will provide clues about the outlook for Europe's aviation industry.

Higher energy prices and geopolitical uncertainty remain important challenges for airlines. The latest earnings disappointments from major technology companies have intensified concerns over the sustainability of the AI investment boom. Upcoming results from chipmakers and technology giants will be crucial in determining whether investor enthusiasm can recover or whether the sector faces further pressure.

US political developments, labour market data, corporate earnings and central bank decisions will converge to shape investor sentiment. Developments in Brazil and Indonesia will add to the emerging-market focus, making the week an important test for global equities, currencies and bonds.