Xi in Washington: Trade and Tech Tensions Dominate Global Market Focus
The upcoming week in focus is packed with significant events that could shape global financial markets. On Monday, China's Loan Prime Rate (LPR) announcement is expected to show no changes, maintaining rates at 3.00% for one year and 3.50% for five years.
Market participants are split on what the South African Central Bank will do in its Tuesday meeting, with a 52% chance of a 25bps hike. While inflation remains outside the bank's target band, recent growth figures have been soft, which could sway dovish members to hold rates.
The UK and Eurozone Flash PMIs are also due on Wednesday, expected to remain steady at around 52.5 in September. This would signal continued but modest private-sector growth, with services being the main driver of activity.
On Thursday, Chinese President Xi's state visit to the US will take center stage, with trade and technology likely to be major topics for discussion. The meeting follows an agreement between the two leaders in May to pursue greater economic and strategic stability.