G20 Meeting and Interest-Rate Decisions Set to Drive Global Market Volatility
Global market triggers are expected to come into play this week as the G20 meeting takes center stage. Central bankers will convene in Asheville, North Carolina, on Monday and Tuesday, with Japan's finance minister and Bank of Japan Governor Kazuo Ueda in attendance. Investors will closely watch discussions amidst uncertainty over geopolitics, elections, and upcoming interest-rate decisions.
The US Treasury market is also expected to become a source of volatility as investors assess efforts to contain long-term borrowing costs. Discussions around Treasury bond buybacks have revived concerns over the impact of America's nearly $40 trillion debt pile on the dollar. The greenback has stabilised after recent selling, but the debate remains active.
On Friday, the US jobs report is expected to provide fresh clues about the health of the labour market. Employment is forecasted to have increased by around 45,000 in August, following an unexpected decline of 23,000 in July. A weak report could strengthen expectations for easier monetary policy, although markets still see better-than-even odds of a rate hike before the end of the year.
The Reserve Bank of New Zealand is expected to raise its policy rate to 2.75% on Wednesday as inflationary pressures remain elevated. Meanwhile, the Bank of Canada is expected to leave rates unchanged as inflation remains relatively contained, although trade tensions with the US continue to cloud the economic outlook.