Filtering The Data Intensive Week

The markets are going into a nervous week after the selloff seen Thursday and Friday. This will start with earnings coming out for companies like Caterpillar (CAT), Ford (F), and Apple (APPL). Caterpillar earnings will help to confirm or ease concerns about the slowdown seen in recent data out of China. On top of this we have the Fed meeting which some are speculating on whether the tapering will continue at the $10bln a month pace in light of recent events. I think the  thought of a change in policy, or language, is unfounded on the declining of asset prices from 52week and all-time highs. One of the more important pieces of news coming out this week is the Eurozone inflation rate. Many are expecting this to show a rise in the rate of inflation from the 0.07% low seen last month. Should the rate in fact come in lower than expected, it should change the perspective of how the ECB has been viewing inflation and rates thus far. A lowering of rates could see changes in US bonds and possibly even emerging markets, where more liquidity in combination with rising rates in EM countries could see more foreign capital inflows.