Asian shares got off to a cautious start on Monday as a jump in oil prices to three-year highs could inflame inflation fears and aggravate the recent hawkish turn by some major central banks. Oil pushed past its July peaks as global output disruptions forced energy companies to pull large amounts of crude out of inventories, while a shortage of natural gas in Europe pushed costs up across the continent.
For the US, Core durable goods orders for August kicks things off on Monday. The focus will then shift to consumer confidence figures on Tuesday. We have seen market sensitivity to consumer confidence heightened in recent months. On Thursday, the focus will then shift to final GDP numbers for the 2nd quarter and weekly jobless claims. Barring a marked revision to the GDP numbers, expect the jobless claims to be key. At the end of the week, inflation, personal spending, and ISM Manufacturing PMI figures will also influence. On the monetary policy front, we will expect increased sensitivity to FOMC member chatter in the week. FED Chair Powell and several FOMC members are scheduled to speak in the week.
For Europe, inflation is still a key area of interest, prelim member state and Eurozone inflation figures will also influence in the week. On the monetary policy front, ECB President Lagarde is also scheduled to speak in the week. Expect any chatter on the economic outlook or monetary policy to move the dial.
BoE Governor Bailey is due to speak on Wednesday. Following the BoE’s hawkish guidance last week, there will be plenty of interest in the Governor’s speech so be ready and watch the GBP during this event.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
3rd Party Cookies
This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.
Keeping this cookie enabled helps us to improve our website.
Please enable Strictly Necessary Cookies first so that we can save your preferences!
