Global Markets Gear Up for Busy Week of Economic Releases and Central Bank Decisions
The upcoming week is packed with significant economic releases and central bank decisions that will set the tone for markets. On Monday, Japan's preliminary Q2 GDP growth is expected at 0.5% Q/Q and 2.0% annualised, driven by domestic demand.
China's industrial production, retail sales, and fixed asset investment data will also be released on Monday, with expectations of a slight moderation in growth. Focus will remain on the divergence between resilient industrial activity and continued weakness in domestic demand.
The Canadian inflation report on Monday will be closely watched for its implications on interest rates, with markets pricing around 13bps of tightening by year-end. The Bank of Canada targets 2% headline inflation within a 1-3% control range, and another soft report would strengthen the case for remaining patient.
The UK jobs report on Tuesday is expected to show continued stabilization in the labour market, while the UK inflation report on Wednesday will be closely watched after last month's hotter-than-expected core print. The FOMC minutes on Wednesday will also provide insight into the Fed's decision-making process and potential future policy direction.