Analytics

Weekly News 07.10 -11.10.2019

Introducing the most complete review of the upcoming week from analysts Olymp Trade


This week, markets are awaiting the release of important US economic indicators: PPI, Core CPI, and labor market data. Employment data for Canada will also be published. New protests are expected in the UK, France, and Hong Kong. The story on the attempt to impeach the US president is developing.

 

October 7. Holiday in China. Climate protests in London

In China and Hong Kong, the day is an official holiday. But as recent events have shown, for Hong Kong residents time off from work is an occasion to hit the streets and fight for their freedom. Increased protest activity is likely on this day.


On October 7, climate change activists plan to block the main roads near the British Parliament in London. Members of the movement are calling for urgent measures to protect the environment.

 

October 8. US PPI. Protests in France

At 12:30 GMT, the US producer price index (PPI) for September will be released. Experts expect this important inflation indicator to show a slight increase of 0.1%.

Over the past seven months, the index was either at this level or exceeded it. This trend will likely continue.


Representatives of the Young Farmers (Jeunes Agriculteurs) association and the National Federation of Land User Unions (FNSEA) intend to block the main transportation routes in France in response to the trade agreement between the European Union and Canada signed in July.

In addition, protesters oppose an earlier approved trade agreement with a bloc of South American countries (MERCOSUR). Agricultural workers are worried about the prospects of competition with farmers in Brazil and Argentina.

 

October 9. US labor market. ECB staffing issues

At 14:00 GMT, updated data on the number of open vacancies in the US labor market (JOLTS) for August will be released. In 2019, the indicator reached its peak at the beginning of the year at 7.625 million vacancies. Since then, the indicator has mostly decreased – to 7.217 million in July.

If the report shows another decline, investors may reflect on a worsening situation in the labor market.   


Eurozone finance ministers will begin discussions on candidates for a vacancy on the Executive Board of the ECB. The seat became available after Sabine Lautenschläger left the bank. She declined to comment on her departure. However, the media began to seriously address significant disagreements within the regulator.

Christine Lagarde, former Chairman of the IMF, will soon become President of the ECB. Her arrival is connected with the resumption of economic stimulus measures. It’s possible that Lautenschläger didn’t agree with such policy.

 

October 10. Core CPI in the US. US-China talks

At 12:30 GMT, another important indicator of US inflation will be published – the core consumer price index (Core CPI) for September 2019. Expert estimates adjust the market to an indicator no lower than 0.2%. This is close to the average value for similar reports in recent years.


In Washington, trade talks between the US and China are set to resume. The Chinese delegation will be headed by Liu He, Vice Premier of the State Council. The countries will try to return to the negotiating table.

Experts don’t have great faith in the prospects for renewed dialogue between the two nations. Maybe Chinese leadership is counting on the arrival of a new US president in 2020.

 

October 11. Employment in Canada. US impeachment hearing

At 12:30 GMT, employment figures for Canada for September will be released. An increase of 15,000 jobs is expected, which is a fairly modest forecast. The average indicator for the year is 27,750.


Former US Ambassador to Ukraine Marie Yovanovitch will testify as part of the impeachment inquiry of President Donald Trump initiated by the Democrats. The reason for the investigation is information about the American leader’s desire to receive information from Ukraine about the son of his political opponent Joe Biden.

According to media reports, Donald Trump allegedly asked for compromising information about Hunter Biden from Ukrainian president Volodymyr Zelensky in exchange for economic aid. The American president called this impeachment an attempted coup.

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