This week, we have only one central bank deciding on monetary policy: the Norges Bank. Expectations are for the Bank to keep interest rates unchanged, but to keep the door wide open for a hike in September. In the UK, we get jobs, inflation and retail sales data. We get inflation figures from Canada as well.
Monday appears to be a relatively quiet day as no major events or indicators are on the agenda.
On Tuesday, during the Asian morning, we get China’s fixed asset investment, retail sales and industrial production, all for July. Expectations are for fixed asset investment to have risen 6.0%, the same pace as in June, while both industrial production and retail sales are expected to have accelerated to +6.3% yoy and 9.2% yoy, from 6.0% and 9.0% respectively.
During the European morning, Germany’s final CPIs for July, the nation’s preliminary GDP for Q2, as well as the ZEW survey for August are coming out. The final inflation prints are expected to confirm the preliminary estimates, while the preliminary growth estimate is expected to...
According to the IHS Markit/REC Report on Jobs for the month, inflation of salaries for permanent-placed staff held close to a three-year high, while temporary pay rates stood near their two-year peak. So, having this in mind, we see the risks surrounding the earnings forecasts as tilted to the upside.
On Wednesday, Asian time, Australia’s wage price index for Q2 is coming out. The forecasts suggest that...
Read the full financial markets weekly outlook on JFD Research.