- US inflation updates
- Earnings season progresses
- Summer doldrums?
Monday 8th August
The week starts with updates from Japan covering Bank Lending, the Current Account and Economy Watchers Sentiment. We also have Swiss Unemployment, and the Euro zone Sentix Investor Confidence survey. Monday’s most significant earnings announcements come from:
- Ambac Financial
- Barrick Gold
- Canoo
- Groupon
- News Corp
- Palantir
- SmileDirectClub
- Tyson Foods
Tuesday 9th August
Overnight we have the latest Retail Sales Monitor from the British Retail Consortium. From Australia we have the NAB Business Confidence index, while from Japan there’s M2 Money Stock and Preliminary Machine Tool Orders. Later, from the US, we have some second order releases in the form of the NFIB Small Business Index, Preliminary Nonfarm Productivity, Preliminary Unit Labour Costs, and the IBD/TIPP Economic Optimism index. The biggest earnings include:
- AKAMI Tech
- H&R Block
- Coinbase
- Dine Brands
- Planet Fitness
- Ralph Lauren
- Roblox
- Target Hospitality
- trivago
- Warner Music
Wednesday 10th August
Overnight, from China we have inflation data in the form of the Consumer Price Index (CPI) and the Producer Price Index (PPI). There’s also another clutch of second order data from the US, including Final Wholesale Inventories, the Federal Budget Balance, and Weekly Crude Oil Inventories. But we also have the week’s biggest economic release in the form of the US CPI. This has disappointed investors, the Federal Reserve, and the US government alike over the past few months as it has failed to show any indication that headline inflation (including food and energy) has peaked. In fact, the latest update on the Fed’s preferred inflation measure, Core Personal Consumption Expenditures (PCE), which excludes troublesome items food and energy, confirmed that inflation across the US continues to rip higher.
But back to the CPI: both Core and Headline have come in significantly above expectations for the last three months. The hope is that this latest reading for July will offer some respite. If not, then we may see forecasters signal more hawkishness from the US Federal Reserve when its FOMC meets in September. Currently, the CME’s FedWatch tool puts the probability of a 50 basis-point rate hike on 21st September at 70%, and 75 basis-points at 30%. Could we see a shift in these odds after the CPI is released? Today’s major earnings reports come from:
- Advent Tech
- Baidu
- CyberArk Software
- Fox Corp
- Spirit Airlines
- Walt Disney
- Wendy’s
Thursday 11th August
There’s a Bank Holiday in Japan, but overnight we have updates on UK house prices from the Royal Institute of Chartered Surveyors and Australian MI Inflation Expectations. From the Euro zone we have Germany’s Wholesale Price Index. Then we have another glance at US inflation in the form of PPI, along with Weekly Unemployment Claims, and Mortgage Delinquencies. Key earnings reports come from:
- Agile Therapeutics
- Cardinal Health
- Rivian Auto
- Six Flags
- Snap One
Friday 12th August
From the UK we have Preliminary Q2 GDP, Construction Output, Industrial Production, Manufacturing Production, Business Investment, the Goods Trade Balance, and Index of Services. From the Euro zone we have Industrial Production, the Italian Trade Balance, and French final CPI. Wrapping things up for the week there’s US Import Prices, Consumer Sentiment, and Inflation Expectations.
David Morrison is an Analyst with Trade Nation. Trade Nation was set up with the specific remit to help customers realise their trading goals by changing the way they engage with the financial markets. As well as providing full transparency and making sure all customers get a fair deal, Trade Nation is fully regulated. This means customers can be confident they’re getting the trading experience they deserve. Visit www.tradenation.com to find out more
