The biggest week for financial markets in 2024 with the three Es: The US Election, Earnings, Economic data. Plus the Fed's and RBA decision

The Aussie stock market $S&P/ASX 200 (.XJO.AU)$ started the week with a gain of 0.7% on Monday, with risks of a pullback thick in the air. The ASX200 has now fallen 2.6% from its record high. While on Friday the S&P500 closed 0.4% higher and is now down 2.5% from its record all time high. Be mindful that the market could see big swings in either direction this week.

The US dollar index, the DXY, is at four-month highs. Bond yields are at their highest levels since June, and the market’s fear gauge, the volatility index (VIX), is at one of its highest levels this year. This suggests traders are on edge. If these indicators continue to rise, bonds and the share market could face selling pressure, and investors might keep cash on the sidelines until perhaps next week. For more on the VIX, read our Weekly or watch the video on what happened when the VIX last jumped above its current level.

Aussie banks are the most expensive in the world, with the ASX 200 Finance Index trading higher than its global peers from a price-to-earnings perspective. Banking stocks appear due for a haircut, with CBA $CommBank (CBA.AU)$ Australia’s biggest company, and NAB $National Australia Bank Ltd (NAB.AU)$ hitting a double top, a technical term suggesting they could pull back. The reason bank stocks could be due for a pullback is because inflation is expected to pick up and consumers are expected to spend and borrow less, with the RBA expected to keep interest rates on hold tomorrow. So, I think traders and investors will really begin to question why Aussie bank stocks are so high. This means it could be time to take profits on some of your banking stocks or be prepared to ride a very bumpy wave. NAB’s $National Australia Bank Ltd (NAB.AU)$ results and ANZ’s $ANZ Group Holdings Ltd (ANZ.AU)$ this week will also be on watch.

Gold stocks are moving up. We saw gold stocks hit fresh highs on the ASX today. Local tech stocks did too, with Nextdc $Nextdc Ltd (NXT.AU)$ and Technology One $Technology One Ltd (TNE.AU)$ higher. Rio Tinto and Fortescue are also on the rise. If you are a long mining stock investor, this week I think you should watch rare earth, copper, and uranium names this week such as BHP $BHP Group Ltd (BHP.US)$ Lynas Rare Earths $Lynas Rare Earths Ltd (LYC.AU)$, Paladin Energy $Paladin Energy Ltd (PDN.AU)$, Boss Energy $Boss Energy Ltd (BOE.AU)$, and Deep Yellow $Deep Yellow Ltd (DYL.AU)$. Why? Well, Google $Alphabet-C (GOOG.US)$ and Amazon $Amazon (AMZN.US)$ announced they’re boosting spending in AI infrastructure and uranium. Also, note that uranium stocks might get a boost if US uranium darling Constellation Energy $Constellation Energy (CEG.US)$ , one of the world’s biggest uranium companies, releases a better-than-expected set of numbers and a stronger outlook than anticipated.

Amazon $Amazon (AMZN.US)$ shares rose 6% on Friday, leading big technology names higher, while Lululemon $Lululemon Athletica (LULU.US)$ shares gained about 8%, marking its biggest jump in one year, with technical indicators suggesting the athleisure stock will move higher. Also, keep Nvidia $NVIDIA (NVDA.US)$ on watch. It will be added to the blue-chip index, the Dow Jones, replacing Intel before the US market opens on November 8. Also, on Friday, November 8, watch Block $Block (SQ.US)$ $Block Inc (SQ2.AU)$ Australia’s 12th biggest company, which is due to release earnings. Block (formerly known as Square) makes about 40% of its revenue from transactions made in bitcoin and Bitcoin holdings. Block could also be in focus if Trump wins the US election, as Bitcoin is expected to rally.