The upcoming week is packed with important economic events that could impact global markets. Here’s a breakdown of some key events to keep an eye on:
PBoC LPR (Mon): The People’s Bank of China is expected to maintain its benchmark Loan Prime Rates next week. This decision follows the central bank’s focus on short-term liquidity measures and signals regarding potential rate adjustments. The PBoC could use a short-term interest rate as its main policy rate in the future, which may impact the benchmark LPRs.
EZ Flash PMI (Wed): The Eurozone Flash PMI data is anticipated to show a slight improvement in both manufacturing and services sectors. The report will shed light on the impact of political uncertainty and cost metrics in the region. While the ECB’s meeting in July may have set the tone for future policy decisions, the PMI data could provide additional insights into the economic conditions.
UK Flash PMI (Wed): The UK Flash PMI data is expected to show a modest increase in both services and manufacturing sectors. The outcome of the General Election and the government’s focus on growth could influence business sentiment. The report will also provide information on inflation trends, which could impact the Bank of England’s upcoming decision.
BoC Announcement (Wed): The Bank of Canada is likely to announce another rate cut following soft economic data. The recent decline in inflation and weak jobs report could prompt the central bank to ease monetary policy further. Analysts are closely watching the statement for any guidance on future rate cuts and the overall economic outlook.
US GDP Advance (Thu): The US advance Q2 GDP report will be closely watched for insights into the country’s economic growth. Retail sales data and durable goods reports will also provide additional context on consumer spending and business investment. Analysts have varying forecasts for Q2 GDP growth, which could impact market expectations for future rate cuts by the Federal Reserve.
CBRT Announcement (Thu): The Central Bank of the Republic of Turkey is expected to maintain its rates at the upcoming meeting. Turkey’s slowing inflation has raised speculation of potential rate cuts, but the central bank is cautious in aligning policy actions with long-term inflation targets. The decision will provide insights into the country’s monetary policy stance.
Japanese Tokyo CPI (Fri): Japan’s Tokyo Core CPI data for July is anticipated to show a slight increase, which could impact the national price trend. The data will be released ahead of the Bank of Japan’s meeting, and analysts expect the central bank to hike rates in response to rising inflation and strong economic indicators.
US PCE (Fri): The US Personal Consumption Expenditures (PCE) data for June will be closely monitored by the Federal Reserve. Analysts have varying forecasts for core PCE inflation, which could influence expectations for future rate cuts. Recent inflation data has been cooler than expected, prompting speculation on the timing of the next rate cut.
These economic events will play a crucial role in shaping market sentiment and expectations for monetary policy decisions in the coming weeks. Investors should closely monitor the data releases and central bank announcements to stay informed about the latest developments in the global economy.