Source: Sharecast
Third-quarter results from H&M will also be in focus, while Costco is slated to report quarterly numbers in the US.
AJ Bell analysts Russ Mould and Danni Hewson said the US discount retailer has seen its shares underperform since hitting more than $1,000 in May as slower sales growth and a premium valuation have weighed on investor sentiment.
"A key focus for its fourth-quarter earnings will be whether Costco has absorbed elevated transportation and fuel costs without hurting margins or its customer value proposition," they said. "Membership fees are a key cog in the Costco profit machine, so renewal rates are an important metric for investors to keep a close eye on. Maintaining these at historically high levels will be crucial to the company’s future prospects.
"Costco has a history of returning excess cash through special dividends and with a current cash pile close to $20 billion, hopes are building for another bumper payout."
Also on Thursday, US President Donald Trump and China’s XI Jinping are due to sit down and discuss a range of issues at the White House from trade to AI. Saxo Markets UK strategist Neil Wilson said that amid warnings of an AI apocalypse in recent days, there is going to be a big focus on this area. He noted that Trump said he had discussed "guardrails" for AI with Xi at a meeting in Beijing four months ago.
"The meeting comes ahead of the November expiry of a trade truce between the US and China that the two leaders agreed in Korea last October," said Wilson.
"Investors will be keen to hear about any form of tariff reduction or extension of the trade truce, albeit a grand bargain seems unlikely. Aside from AI and trade the leaders will discuss their rivalry rare earths, while talks are bound to also focus on the Iran conflict."
In terms of macro releases, the German Ifo index for September will be out, along with US initial jobless claims and new home sales data. Also of note will be the latest policy announcement from the Swiss National Bank
Ipek Ozkardeskaya, senior analyst at Swissquote, said Swiss policymakers will likely keep rates unchanged at 0%, as inflation in Switzerland has picked up momentum due to higher energy prices, accompanied by a cheaper Swiss franc.
"Yet price pressures remain well within the SNB’s price-stability range, giving policymakers time to adapt," she said. "Some expect the SNB to start sounding more hawkish at this meeting, reflecting the hawkish shift in the policy outlook of major central banks and preparing the market for an eventual rate hike next year. And given the geopolitical and macroeconomic backdrop, the balance of risks is increasingly tilted towards the next SNB move being a rate hike rather than a cut.
"But the SNB is dancing to a fine tune nowadays. Sound too hawkish, and the franc strengthens - note that the Swiss don’t want that. Don’t sound hawkish enough, and the franc softens, potentially sending inflation up in the elevator. In short, the SNB will have to strike a very fine balance."