Investors await US housing market data amid earning season this week

As the third quarter earnings season gets underway, U.S. stock futures are trading higher during Sunday's evening deals. This is because market participants anticipate how major companies will react to a slowdown in global growth over the next few months.

There are several companies expected to report this week, including Rio Tinto ADR, Bank of America Corp, Bank of New York Mellon and Charles Schwab Corp. Further down the road, Netflix Inc., International Business Machines and Tesla Inc will report their results. There will also be data from the Empire State and Philadelphia Feds on manufacturing, industrial production, building permits, housing starts, and existing home sales. Bullard, Bowman, and Williams from the Fed are scheduled to speak at the FOMC as well.

In addition to concerns that the Federal Reserve's aggressive rate hike campaign could tip the economy into recession, the U.S. earnings season begins against a backdrop of concern. The increase in borrowing costs has already contributed to a cooling of demand in the U.S. housing market, which investors will get an update on. After Prime Minister Liz Truss was forced to fire her predecessor, Jeremy Hunt will have his first full week as Chancellor.

China’s data is in focus

As for elsewhere in the world, third-quarter economic data from China is likely to identify the challenges that face the world's number two economy as it reaches the end of the third quarter. In Japan, the yen is back on intervention watch. Here’s what you need to know to start your week.

After last week's stronger-than-expected acceleration in US inflation data, attention will be focused on the housing market with reports on building permits, housing starts, and existing home sales due in the coming days.

This is the first time in over a decade that house prices fell in July as rising interest rates have weighed on housing demand, along with a decline in mortgage applications.

UK inflation figures

Furthermore, investors will also be paying attention to Wednesday's UK inflation data for September, which is expected to show a double-digit rise amid a cost-of-living squeeze in the country, while retail sales figures on Friday may point to a decline in consumer spending in the country.

After the Bank of England ended its emergency bond-buying program on Friday, Britain's government bonds will resume trading on Monday without any support from the Bank of England.

In recent days, there have been reports from the government that they are planning to do a major U-turn on their tax cuts plans, which has helped ease investor concerns about the public finances, but these plans will need to be put into action to prevent a renewed selloff of bonds.

Crude oil

On Monday, oil prices recovered some of their losses from the previous week. This is because more OPEC+ members expressed their support for the recent production cut of 2 million barrels per day, despite U.S. opposition.  

Saudi Arabia, the United Arab Emirates, Iraq and Kuwait, among other Organization of Petroleum Exporting Countries members and its allies, all of whom supported the reduction in production over the weekend, expressing a joint need to stabilize oil prices in the face of slowing economic growth and headwinds.