Global financial markets ended the week on a high note, as central bank updates from Jackson Hole propelled major US indices upward. The Dow, the S&P, and the Nasdaq all gained over 1% after Jerome Powell confirmed that the Federal Reserve’s easing cycle would begin next month.
This week’s macroeconomic data calendar is slightly busier, with key updates from the US and Eurozone, particularly on inflation. As the Jackson Hole symposium wraps up on Sunday, traders might see some market gaps on Monday morning. However, the overall impact seems to have been positive for risk sentiment.
Here’s our usual day-by-day breakdown of the major risk events this week:
The Asian session has a light calendar, but traders are prepared for potential market movements as the Jackson Hole event concludes. The European session will experience lower liquidity due to the bank holiday in London. However, Euro traders will keep a close eye on the German Ifo Business Climate data, which is due early in the day. The first US data of the week will be released once New York opens, with the Durable Goods numbers expected.
It’s a relatively quiet day on the calendar, with little of significance in the first two trading sessions. However, the New York session will feature the latest CB Consumer Confidence data from the US, along with the Richmond Manufacturing Index, which could influence investor sentiment.
The initial focus in Asia will be on the Australian markets, with key CPI figures due out early in the day. The European session remains quiet, while the US day will include an update from FOMC member Christopher Waller and the Crude Oil Inventories report.
The Asian session only features third-tier data, but Euro traders will be on alert once the European markets open, with key inflation data expected from both Germany and Spain. In the US, significant GDP and Pending Home Sales data will be released, along with the usual weekly unemployment claims figures.
Friday is set to be the busiest day of the week for investors, with data releases scheduled across all trading sessions. The Asian session will focus on Australia, with the latest Retail Sales figures due out. The crucial Eurozone CPI data will be released early in the London session. In the New York session, the highlight of the week will be the Fed’s preferred inflation indicator, the Core PCE Price Index. Canadian markets will also be on alert with the latest GDP data from Ottawa, before the week closes with the Chicago PMI numbers and the Revised University of Michigan Consumer Sentiment data.
