Market Focus Shifts to Key Economic Data Releases

This week's market focus is on key economic data releases from various countries. The Federal Reserve's July meeting minutes, preliminary Purchasing Managers' Index (PMI) figures, and Japan's GDP and inflation data are expected to influence investor sentiment.

The Fed minutes may provide clues about a potential rate hike in September. With weak employment data and moderate consumer price index (CPI) inflation, the market has lowered its expectations for a rate hike. However, LSEG data shows only a 27% chance of a 25 basis point hike next month.

In addition to the Fed minutes, preliminary PMI figures from major economies will provide information on regional economic activity and price pressures. Investec analyst Lottie Gosling expects the Eurozone PMI to decline due to ongoing tensions between the U.S. and Iran in the Strait of Hormuz.