Global financial markets will focus on a flood of US economic data to be released over the coming week, highlighting the inflation report released on Friday, in search of further evidence about the timing of the Federal rate hike.
Investors will also listen to the words of a number of Federal Reserve officials, who will speak to the public, in search of new information on when and how the central bank will reduce its ballooning balance sheet.
Elsewhere, China will release monthly reports on international trade and inflation amid recent signs that the world’s second largest economy is still strong.
The following are the major economic events :
– US inflation data
The US Department of Commerce will release the inflation report for July at 8:30 am Eastern Time (12:30 GMT) on Friday. Economic analysts expect consumer prices to rise by 0.2%, while core inflation is expected to rise by 0.2%. On an annualized basis, markets expect inflation to rise by 1.7%.
The Federal sees key price indicators as a better measure of long term inflationary pressures because it excludes volatile food and energy categories. The bank has announced on several occasions that it aims to reach inflation to 2% or slightly lower. Rising inflation is driving the Federal to raise interest rates in the coming months.
– China: International trade figures
China, the world’s second largest economy, will release international trade figures for July early Tuesday and at 3:00 am GMT. Analysts expect the report to show that the country’s trade surplus rose to 46.08 billion USD from 42.77 billion USD in June.
Analysts also expect exports to increase by 10.9 % from the same month last year, after rising by 11.3 % in the previous month, while imports are expected to increase by 16.6 % over the same month last year. Rose by 17.2 % during the previous month.
– Industrial production of the United Kingdom
The British Bureau of National Statistics is due to publish industrial activity data for the country for the month of June at 8:30 am (4:30 am EST) on Thursday, After dropping 0.2 % in the previous month. Industrial production is expected to rise by 0.1 %, after falling by 0.1 % in May.
The Bank of England cut its forecast for economic growth and wages in its statement last week, showed no rush to raise interest rates, and warned that Britain’s exit from the EU would affect the economy.
– Monthly reports of OPEC and the International Energy Organization
The Organization of the Petroleum Exporting Countries (OPEC) will publish its monthly report at 7:00 am Eastern Time (11:00 am GMT) on Thursday. As usual, the report will include figures on the status of global crude oil inventories for July.
On Friday, the International Energy Agency (IEA) will release its monthly report on oil supply and demand on world markets.
The traders ‘data will give an idea of the results of oil producers’ attempts to rebalance global markets