G20 Meeting Brings Global Market Turbulence
Global markets are bracing for another busy week after the summer lull. Central bankers from around the world will gather in Asheville, North Carolina, for a G20 meeting, where Japan's finance minister and Bank of Japan Governor Kazuo Ueda will attend.
The absence of Ueda at Jackson Hole has already turned investors' attention to the G20 gathering, which promises to be turbulent with geopolitics, elections, and interest-rate decisions all in play. The Fed and BOJ September meetings are key risk events, while Middle East tensions remain a focus.
Investors are also keeping an eye on U.S. Treasury market dynamics, where talk of 'dollar debasement' has picked up pace. This concept holds that if the U.S. Treasury caps long-term borrowing costs through bond buybacks, investors will price in worries about a $40-trillion debt pile and policy uncertainty somewhere, the dollar.
The upcoming week's data releases include Friday's U.S. jobs report, expected to show employment climbed by 45,000 jobs in August. The Reserve Bank of New Zealand (RBNZ) also announces its policy decision on Wednesday, where a hike to 2.75% is likely a done deal as the economy grapples with mounting price pressures.