Global financial markets got nicely back on track last week with the crashes of a couple of weeks ago starting to drop into the distance in the rear-view mirror for many investors. Stocks have risen nicely to push back towards record highs as data in the US has pointed strongly towards a soft landing for the world’s biggest economy.
The macroeconomic data calendar is again relatively quiet through the week and investors will be hoping that the positive momentum from the last few days trading will continue to build. There are some key data releases in some jurisdictions for traders to monitor but the highlight for many is likely to come at the end of the week when the great and good of the central bank world meet in Jackson Hole, Wyoming where key updates from the Fed and BOE amongst others could move markets.
Here is our usual day-by-day break down of the major risk events this week:
It’s a quiet start to the week on the event calendar with little on the schedule for the first two trading sessions of the day. The New York session is also thin on data releases, but we do hear from Fed member Christopher Waller early in the session which could push rate cut expectations one way or the other.
There is the potential for some volatility in Asian markets on Tuesday with China due to announce any changes in the Loan Prime Rates and the RBA’s Monetary Policy Meeting Minutes being released. The European session see’s the SNB’s Thomas Jordan speaking in early in the day, but the highlight of the day comes in the New York session with the latest Canadian CPI data due out. Later in the session we hear from the Fed’s Bostic and Barr.
There is very little scheduled to move markets on Wednesday across all three trading sessions until we hit what will be the main focus for most traders at the end of the US Day when the FOMC’s latest meeting minutes are released.
Thursday sees a raft of Flash Manufacturing and Service PMI data releases due across the day with numbers due out from Australia, France, Germany, the UK and the US – although not as impactful as CPI data these number are closely watched as another piece of the inflation puzzle. The US session also has the usual weekly unemployment claims numbers due out as well.
The early focus in Asia will be on New Zealand with the latest Retail Sales numbers due out, however it is then a long wait for investors until we get to the US session and the start of the Jackson Hole Symposium, where we are due to hear from the Fed’s Jerome Powell and the Bank of England’s Andrew Bailey. Prior to the big central bank updates we also have the latest Canadian Retail Sales numbers due out.
