This week sees investors focus on the US as a second consecutive rate cut looks likely; the Bank of England are set to deliver their interest rate verdict and there’s plenty of economic data coming in from the Eurozone.
US: A second consecutive rate cut?
Though it’s not guaranteed, it is very much likely that the Federal Reserve will cut interest rates for a second time this year on Wednesday. Not that it’ll be enough for Donald Trump, who wants the ‘boneheads’ at the central bank to lower rates to ‘zero or less’ in order to help the US refinance its debt.
Given the relative level of certainty regarding a rate cut this week, the real market mover may end up being what the Fed hints it has planned for the rest of the year. With 2 meetings left after the September get together, investors will be keen to get a sense of whether the central bank has a couple more cuts left in the tank.
Either side of Wednesday’s FOMC statement, there’s the Empire State manufacturing index on Monday, the industrial production and capacity utilization rate readings on Tuesday, and the Philly Fed manufacturing index on Thursday.
The US markets, of course, will also be sensitive to any news coming out of China, specifically Monday’s fixed asset investment/industrial production/retail sales hat-trick.
UK: Interest rates and prorogation
While not quite as anticipated as its US counterpart – its hands remain somewhat tied by Britain’s Brexit mess – investors will be nevertheless curious to see what the Bank of England has to say on Thursday.
Beyond that and, with parliament prorogued, the week’s other flashpoints are Wednesday’s inflation readings and Thursday’s retail sales data.
UK: Stocks to watch
MJ Gleeson are slated to announce results on Monday; Union Jack Oil on Tuesday;. Kingfisher on Wednesday, Kier Group and Next on Thursday and Smiths Group on Friday.
Eurozone: Still sensitive to US – China trade tensions
A week after its own central bank intrigue, the Eurozone could be more focused on goings on in the US and China than at home. However, the region does have a fairly consistent stream of data, with the ZEW economic sentiment readings on Tuesday, inflation figures on Wednesday, current account numbers on Thursday and PPI and consumer confidence estimates on Friday.
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