This will be the biggest week in
the global financial market this year. This article looks at the biggest
stories that will dominate the news.
Federal Reserve
The Federal Open Market Committee
(FOM) will start its monetary meeting tomorrow. The committee will release its
decision on Wednesday. Investors expect the Fed to lower interest rates by 25
basis points. Therefore, since this has already been widely reported and
advertised, the market will be watching at what the officials signals for the
coming meetings. The market is pricing for another 25 basis points cut, which
means that rates may end the year at 2.00%. This information will come a few
days after data from the US showed that the economy expanded by just 2.1% in
the last quarter. This was lower than the 3% target by Donald Trump. Before the
Fed meeting, the market will receive the personal income, pending home sales,
and consumer confidence data.
US Jobs Numbers
The first Friday of every month
is usually known as the Jobs day. This is when the Labor Department in the
United States release the data on the number of jobs created in the previous
month. This week, investors will receive the employment data. A survey by
Bloomberg found that investors expect the economy to add more than 166k jobs in
July. This might be a lower number than the 224k jobs created in June.
Bank of Japan and BOE
Bank of Japan officials will
start their meeting today. The interest rates decision will be released
tomorrow. Investors expect the BOJ to leave interest rates unchanged at -0.10%.
The officials are also expected to announce that the rates will likely remain
in this level for longer as the country continues to deal with the slowing
economy. On Thursday, the BOE officials
too are expected to leave interest rates unchanged. Other central banks
expected to release their decision are in Brazil and Czech Republic.
Other Economic Data
There will be a bunch of economic
data this week. On Tuesday, Japan will release its employment and industrial
production numbers ahead of the BOJ decision. France, Austria, Sweden, and
Latvia will release their GDP data. Other key data that will be released
tomorrow will be:
- Australia building approvals.
- German import and export price index.
- EU service sentiment, consumer confidence, and
business climate. - South African unemployment rate
- US pending home sales
- Redbook
On Wednesday, key data will be
the Chinese manufacturing and services PMI data, EU CPI numbers, Japan
household confidence and construction orders, Spanish GDP, French CPI, German
unemployment rate, EU CPI, and Canadian GDP among others.
On Thursday, key data like Caixin
manufacturing PMI from China, Australia export and import price index, Sweden
manufacturing PMI, German manufacturing PMI, and ISM manufacturing PMI from the
US.
On Friday, Australia will release
the retail sales data while Switzerland will release its CPI data. Other key
data will be the construction PMI from the UK, EU’s retail sales, and Canadian
trade data among others.
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