Week Ahead: Inflation readings to shape central bank views
There are a lot of things going on this week, with inflation leading the headlines.
With investors betting the Federal Reserve will cut interest rates again in September, Tuesday’s US inflation figures will be of key importance for the direction of global markets. Core CPI advanced 2.1% in June, its biggest increase in a year and a half. If inflation pressures continue to build, it could undermine doves on the FOMC calling for more hikes. UK inflation figures are released on Wednesday.
China and Germany growth
Fears about a slowdown in China and Germany are at the heart of investor concerns for the global economy. As such a batch of data from the two countries this week will be important for risk assets. China’s industrial production figures and the German preliminary GDP print on Wednesday will be the most closely watched.
Walmart and US retail sales
Q2 earnings season is well past its peak but US retail giant Walmart delivers its quarterly numbers on Thursday before the market opens. Q1 earnings were a positive surprise with EPS of $1.13 beating expectations of $1.02. The key comp sales number hit 3.4%, making it the best quarter in 9 years. Despite fears for the US economy, consumer confidence and retail sales gauges remain robust. On that front, US retail sales numbers are due on Thursday shortly after Walmart reports.
Tencent and Alibaba
We’ll also be watching earnings from China giants Tencent and Alibaba. The ongoing trade dispute between the US and China is sure to be a weight, however Chinese consumers have remained relatively robust. For Alibaba, in addition to its ecommerce platform, we’ll be watching to see how well its cloud computing business is doing. Both represent important bellwethers for the Chinese economy.
Earnings season is still going strong, with these earnings releases in the next week.
|Pre-Market||14th August||Tencent Holdings Ltd – Q2 Earnings|
|After-Market||14th August||Cisco Inc – Q2 Earnings|
|Pre-Market||15th August||Walmart – Q2 Earnings|
|15th August||Alibaba – Q2 Earnings|
|After-Market||15th August||NVIDIA Corp – Q2 Earnings|
Tune in live or watch on catch-up.
|07.15 GMT||12th August||European Morning Call|
|17.00 GMT||12th August||Blonde Markets|
|12.30 GMT||13th August||LIVE: US CPI Coverage|
|15.30 GMT||13th August||Asset of the Day: Bullion Billions|
|10.00 GMT||15th August||Walmart Earnings Preview: LIVE|
Watch out for the following economic events in the coming week.
|08.30 GMT||13th August||UK Average Earnings|
|12.30 GMT||13th August||US CPI Inflation|
|09.00 GMT||13th August||Germany ZEW Economic Sentiment|
|01.30 GMT||14th August||Australia Wage Price Index|
|02.00 GMT||14th August||China Industrial Production|
|08.30 GMT||14th August||US CPI Inflation|
|01.30 GMT||15th August||Australia Unemployment Rate|
|08.30 GMT||15th August||UK Retail Sales|
|12.30 GMT||15th August||US Retail Sales, Philly Fed Manufacturing Index|