Clouds appear to curve around the dome of the U.S. Capitol during the continuing U.S. government shutdown in Washington, D.C., U.S., October 15, 2025. REUTERS/Kevin Lamarque

LONDON (Reuters) -The U.S. government shutdown extends into another week, earnings season is in full swing, U.S.-China trade tensions are high, and there's plenty of data to mull over.

Japan's parliament, meanwhile, may vote on a new prime minister, and an election in Bolivia has ended almost 20 years of leftist rule.

Here's all you need to know about the week ahead in world markets by Lewis Krauskopf in New York, Rocky Swift in Tokyo and Amanda Cooper, Naomi Rovnick and Marc Jones in London.

1/ US EARNINGS, INFLATION UPDATE ON WAY

U.S. corporate earnings rev up, with Tesla and Netflix, while this week will end with a delayed U.S. inflation release.

After major banks kicked off Q3 earnings, this week sees reports from an array of industries, including consumer companies Procter & Gamble and Coca-Cola, aerospace and defence giant RTX and tech stalwart IBM.

Investors have also been confronting a government data blackout due to the federal shutdown that began on October 1.

While key data including the monthly employment report have been delayed, the government plans to publish September CPI numbers on Friday, allowing the Social Security Administration to meet deadlines related to payment of benefits.

The CPI release comes just ahead of the Federal Reserve's October 28-29 meeting, when the central bank is widely expected to cut rates by a quarter percentage point.

2/ BIG MOMENT FOR TAKAICHI

Japanese markets await an expected parliamentary vote this week that may spur another leg up in a record stocks run.

The blue-chip Nikkei hit all-time highs after Sanae Takaichi, a devotee of the "Abenomics" stimulus policies of the late Shinzo Abe, won a ruling Liberal Democratic Party election on October 4.

After a rift with a long-time coalition party, Takaichi and the LDP last week sought a new partner in the right-leaning Japan Innovation Party, known as Ishin.

On Monday, Ishin leader Hirofumi Yoshimura said the two sides would formalise a coalition deal, ahead of a vote in parliament on Tuesday to decide the next prime minister.

Not surprisingly, the Nikkei is back at record highs.

3/ EARLY WARNING SIGNS

It has been six months since U.S. President Donald Trump unveiled his "Liberation Day" tariffs.

There are trade deals in place and investors and companies have some certainty. Or at least, they did until recently.

Tensions have been flaring again between Washington and Beijing, prompting tit-for-tat fees on cargo ships and ports and a tightening on two-way supplies of key tech-sector materials and parts, though there has been some more conciliatory rhetoric in recent days.

Europe hasn't yet seen evidence of the big spending that national governments, led by Germany, promised earlier this year. China, where growth is slowing too, holds a closed-door meeting of its leaders starting Monday.

The upcoming surveys of business activity for Germany, France, the UK, the U.S. and the euro zone, among other regions, in October could start to reflect some of that renewed angst.

4/ STILL HIGH UK INFLATION?

UK inflation data this week could be pivotal for Britain's gilt markets, sterling and finance minister Rachel Reeves' ability to limit unpopular tax hikes and spending cuts in her November 26 budget.

With Britain's fiscal hole widening because of surging debt payments, Wednesday's September consumer prices report could fuel rate cut bets and offer Reeves some relief if the annualised print comes below the Bank of England's 4% forecast.

But a higher-than-expected increase could keep the BoE cautious and Britain's finances looking precarious, in a threat to sterling's recent strong run against the dollar.

Gilt markets are exhibiting optimism so far, with UK borrowing costs falling to over two-month lows as traders priced a 90% probability of a quarter-point rate cut by February.

5/ VOTING AND VULTURES

Centrist Rodrigo Paz has won Bolivia's presidential runoff, defeating conservative rival Jorge "Tuto" Quiroga, as the country's worst economic crisis in a generation helped propel the end of nearly two decades of leftist rule.

The debt market vultures will be watching closely. The economy is in deep disarray, with inflation running at nearly 25%, fuel shortages rife and the country's foreign exchange reserves now barely covering two months of basic imports.

Paz has advocated a gradualist approach, fully aware of the country's long history of violent unrest at times of economic pain.

His moderate platform — pledging to maintain social programmes while promoting private sector-led growth — appeared to resonate with left-leaning voters disillusioned by the ruling Socialists.

(Compiled by Dhara Ranasinghe; Graphics by Kripa Jayaram; Editing by Elaine Hardcastle and Jamie Freed)