It looks like another interesting week ahead for investors as markets navigate fresh economic data releases, significant rate decisions, geopolitical updates, and continue to respond to Friday’s global cyber outage.
Additionally, earnings season begins in earnest with two key ‘magnificent seven’ companies reporting their quarterly numbers. Both Tesla and Alphabet will release their results on Tuesday, and strong figures could alleviate some of the investor concerns that have contributed to recent declines.
The week concludes on Friday with the Fed’s preferred inflation data release, which could disrupt the currently anticipated rate cut in September.
Here is our usual day-by-day breakdown of the major risk events this week:
It’s a relatively quiet start to the week in terms of economic event risks, with the main update coming early in the day during the Asian session when China announces any changes to the main 1-year and 5-year Prime Loan rates. These rates are expected to remain steady at 3.45% and 3.95%, respectively, and any change could lead to a volatile first session of the day.
Another quiet day in terms of scheduled risk events, with nothing of significant note on the calendar during the first two trading sessions. The US session should be more active with Existing Home Sales data and the Richmond Manufacturing Index numbers due, as well as the key earnings reports from Tesla and Alphabet.
Wednesday has the potential to be the busiest day of the week for traders, with a series of Flash Manufacturing and Services PMI numbers due across the globe, alongside the key rate decision in Canada, where the central bank is expected to cut another 25 basis points.
Once again, the first two sessions of the trading day have little scheduled to move markets. However, Euro traders will closely watch the latest German Ifo Business Climate update in the London session. The New York day sees the usual weekly unemployment claims data released alongside the quarterly Advance GDP and Durable Goods numbers. We are also due to hear from ECB President Christine Lagarde later in the day.
Inflation data is set to dominate market focus on Friday, with the day bookended by the Tokyo Core CPI data release early in the Asian session and the key US Core PCE Price Index number later in the New York session. The revised University of Michigan Consumer Sentiment and Inflation Expectations are also due, and traders will keep a wary eye on any updates from the latest G20 meeting that kicks off in Rio de Janeiro.
