The S&P 500 Index added 4.1% for the week, which was its largest weekly percentage gain since January 2013. The stellar performance came despite Ebola fears, plunging oil prices and speculation over the fate of Europe's economy. Likewise, Asian stocks rose last week, with the regional benchmark index adding gains for the first time in seven weeks. The MSCI Asia Pacific Index jumped 2.9% on the back of strong economic data as well as earnings surprises. For the week, the HSI added 1.2%, the STI gained 1.7% while the Nikkei 225 index jumped 5.2%.

Global investors focused on earnings reports last week which saw US largest companies (eg. Caterpillar Inc, 3M Co, Procter & Gamble and Microsoft Corp) announcing better-than-expected corporate earnings. According to FactSet, profits for S&P500 companies are up 5.6% as compared to a year ago and that growth is better than market expectations of 4.6%. What ultimately drives a stock price higher is a company's ability to generate profits and in turn, investors' confidence is generally lifted when a company outperforms analysts' estimates. 
 
This week, investors will see another batch of quarterly results from US companies when 159 members of the S&P500 index report. Notable companies include Merck, Exxon Mobil, Chevron and Visa. 
 
Focus on FOMC this Wed
Besides focusing on earnings, all eyes will be on the Federal Reserve Policy meeting. While the Federal Open Market Committee had previously hinted that it will end a third round of bond-buying, recent mixed signals about the strength of the US recovery might prompt the Fed to keep interest rates low for longer than expected. The Fed is expected to leave the benchmark interest rate at zero to 0.25% to continue encouraging investment and hiring.
 
On Thursday, the US GDP is expected to show that the country's economy expanded at a 3% annualized rate in the third quarter fuelled by stronger business investment and a narrower trade deficit. (Bloomberg survey)
 
Other economic data scheduled to be released this week are shown below. 
Mon 27 Oct: US pending home sales; HK trade figures
Tue 28 Oct: US durable goods; China industrial profits
Wed 29 Oct: US FOMC rate decision
Thu 30 Oct: US initial jobless claims, GDP
Fri 31 Oct: US personal spending; Eurozone CPI; Singapore unemployment rate