Global markets are poised for a week of potentially significant movement, with a confluence of factors set to influence investor sentiment. Key among these are the release of the Federal Open Market Committee (FOMC) minutes, ongoing India-EU Free Trade Agreement (FTA) negotiations, and the Q2 earnings release from Tata Consultancy Services (TCS).
The FOMC minutes, scheduled for release on Wednesday, October 8, 2025, will provide detailed insights into the Federal Reserve's monetary policy stance. Investors will be scrutinizing the document for clues regarding the future direction of interest rates and the Fed's assessment of the economic outlook. These minutes are a detailed record of the committee's policy-setting meeting held about three weeks earlier. Currency traders and market participants analyze them carefully for any clues regarding the outcome of future interest rate decisions. Any hints of a more hawkish or dovish approach could trigger significant market reactions.
The 14th round of India-EU FTA negotiations is taking place in Brussels from October 6 to October 10, 2025. EU Ambassador Herve Delphin has acknowledged that talks remain challenging with several unresolved issues. The EU is India's largest trading partner, with goods trade reaching $135 billion in 2023-24. A successful FTA could be a "game changer," boosting trade, investment, and supply chain resilience. The agreement has the potential to diversify trade and hedge against uncertainties. However, key issues such as market access and rules of origin are still under discussion. The EU is aiming for a meaningful and balanced package and the completion of the trade deal by December 2025.
Tata Consultancy Services (TCS), a bellwether for the Indian IT sector, will announce its Q2 results on October 9, 2025. The board will also consider a second interim dividend for FY26. TCS's performance will be closely watched, especially as the IT sector navigates challenges related to AI-led transformations. In Q1FY26, TCS reported a net profit of ₹12,760 crore, up 6% year-on-year, and revenue of ₹63,437 crore, up 1.3% year-on-year but down 3% in constant currency terms. Investors will be keen to see if TCS can maintain its growth trajectory and provide a positive outlook for the rest of the fiscal year. The company has fixed October 15, 2025, as the record date for the interim dividend.
Beyond these key events, other factors could influence market sentiment. S&P Global will release India's services and composite PMI on October 6. Furthermore, several members of the Federal Reserve are scheduled to speak throughout the week, potentially offering further insights into the central bank's thinking.
Overall, investors should brace themselves for a potentially volatile week as they digest the FOMC minutes, monitor the progress of India-EU FTA talks, and analyze TCS's Q2 results.
