US stockmarkets finished last week at record highs supported by strong US jobs data, robust corporate earnings, and the potentially game-changing news that Pfizer’s COVID-19 pill reduces hospitalisations and deaths in high-risk patients by 89 per cent.

Locally the ASX200 closed 1.8 per cent higher last week, following the strong lead from Wall Street and as bond yields eased lower.

Here are the top five things to watch in markets this week.

1. US September-quarter earnings season

This week will see reports from AstraZeneca (AZN), AMC Entertainment (AMC), PayPal (PYPL), and Coinbase (COIN).

Coinbase is one of the largest crypto exchanges.

After listing on the Nasdaq in April of this year, it reported record trading volumes and secured its highest number of active users in the second quarter.

Trading activity dropped in the third quarter, following falls in the price of Bitcoin and Ethereum, which ushered in a brief crypto winter before a recovery commenced in September.

The Coinbase share price closely tracks the performance of Bitcoin and Ethereum.

Analysts expect Coinbase to report revenue of $1.57 billion in the third quarter and Earnings Per Share (EPS) of $1.73.

2. US inflation data

Inflation numbers in the US are expected to increase by 0.6 per cent in October, mainly due to surging energy prices, bumping up the annual headline inflation rate to 5.8 per cent.

The US Federal Reserve views rising inflation as “transitory,” and a higher-than-expected inflation print this week will provide a test of their patient outlook.

3. Australian labour force data

The key event on the local calendar is the release of the October labour force data.

The market is looking for a 50,000 rise in employment, while the unemployment rate is expected to rise from 4.6 per cent to 4.7 per cent due to a lift in the participation rate following the end of lockdowns in New South Wales, Victoria and the Australian Capital Territory.

4. Energy prices

Crude oil spring-boarded higher into the end of last week after OPEC+ refused to increase production despite pleas from oil-consuming nations.

The US (possibly in conjunction with Japan, Europe, and South Korea) may deliver on its threat to release oil from its Strategic Petroleum Reserve (SPR), containing about 613 million barrels.

5. Gold

Gold gained 1.95 per cent last week to close at $1818 per ounce after key central banks, including the Reserve Bank of Australia, the Federal Reserve and the Bank of England, were dovish compared to market expectations.

Should gold break above resistance near $1840, watch for a push towards $1910.

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