Global markets finished off last week on a high, with indices across the world again touching fresh record levels, and investors will be hoping for more of the same in the days ahead. However, it is a busier week on the macroeconomic calendar, with some key data and central bank updates ahead of us.
Australian and Chinese markets will be in focus across the week in the Asian sessions, and there may be some moves on the open on Monday after Chinese CPI data came out slightly higher over the weekend, while the PPI numbers were lower than expected. There are key US inflation numbers out through the week as well, which could prove pivotal for September rate expectations, and we are set to hear from several members of the FOMC.
Adding the high propensity of geopolitical updates, including a meeting between Presidents Trump and Putin, it could be a lively trading week ahead of us.
Here is our usual day-by-day breakdown of the major risk events this week:
Monday – It is a quiet start to the week on Monday, with little on the event calendar to move the dial. Japanese markets are on holiday again, which may see a decrease in liquidity in the Asian session, but the main focus will be on Chinese markets, with new loans data due out during the session. There is nothing of note on the calendar in either the London or New York sessions, and traders are expecting a relatively quiet day.
Tuesday – It is a busier day on Tuesday, with key updates due across all three sessions. Australian markets will be in focus in the first session of the day, with the Reserve Bank of Australia set to announce its latest interest rate decision. The London session will see the initial focus on UK markets, with key employment data due out before attention jumps across the channel for the German ZEW Economic Sentiment numbers. Probably the biggest data release of the week then hits early in the New York session, with the US CPI data due out. We will also hear from the Fed’s Thomas Barkin later in the day.
Wednesday – The Asian session will again see the initial focus on Australian markets, with the Quarterly Wage Price Index numbers due out. There is little scheduled during the latter two sessions, although we do have the weekly US Oil Inventory numbers out in the New York session, and Fed members Goolsbee and Bostic are due to speak.
Thursday – It’s another busy day on Thursday. Once again, Australian markets will be in focus in the Asian session, with employment data due out. The European session sees the focus on UK markets again, with GDP numbers out early in the piece, and we have more inflation data due out of the US in the New York session — this time, the PPI numbers are set to drop alongside the weekly unemployment claims data.
Friday – The data continues to come in on the final trading day of the week, with a big data drop due out of China in the Asian session, with traders expected to focus on the Industrial Production and Retail Sales numbers in particular. There is nothing scheduled in the European day; however, holidays in both France and Italy may affect liquidity. Key US numbers are due out again in the New York session, with retail sales data out alongside the Empire State Manufacturing Index. Preliminary University of Michigan Consumer Sentiment and Inflation Expectations numbers are also due out later in the day.
