This week, traders will be following economic news from Europe, Australia, Canada, and the US. However, the statistics are unlikely to have a strong impact on the volatility. The forecasts are mainly indicating economic stagnation. Against this background, there are some political events that can shake stock markets, like trade negotiations between the US and Japan, and the Jackson Hole summit.
August 19. The EU Consumer Price Index. New US sanctions against Russia
The EU releases the consumer price index at 09:00 GMT on August 19. Analysts expect a modest result of 1.1%, which is the same as the figure in the previous report. However, the real data may upset investors even more. The main reason is the global economic slowdown.
On 19 August, the U.S. may introduce new sanctions against Russia over the Skripal case. The restrictions are expected to last for at least 1 year. The list of new sanctions include restrictions on access to the international system of banking development, and number of other prohibitions.
August 20. The Key Interest Rate in Australia. A vote of no confidence in Italy
At 01:30 GMT, the Reserve Bank of Australia will publish the minutes of the recent monetary policy meeting. At the meeting, the interest rate was kept at 1%. Traders will study the documents for hints at a rate change.
August 20 is the date when Italy’s Senate is to debate on the issue of no-confidence vote in the current government. Let us remind you that the leader of the party Matteo Salvini left the coalition with the 5 Stars populists and is pressing for early parliamentary elections.
August 21. Consumer Price Index in Canada. US-Japan Trade Talks
At 12:30 GMT, Canada releases the consumer price index. Due to the global trade tensions, experts do not expect the indicator to change. Thus, there might be zero inflation in the country for the second month in a row.
The U.S.-Japan trade talks will take place in Washington on August 21-22. Donald Trump had asked Shinzo Abe to increase the volume of purchases of US farm products. An agreement between the countries may be reached soon, or at least we might get some hints at it.
August 22. Manufacturing PMI in Germany. The Jackson Hole summit
The Manufacturing purchasing managers index (PMI) in Germany will be published at 07:30 GMT. Some experts believe that the expected value of 45.2 points has been overestimated against the background of the country’s zero GDP. In addition, three previous reports came out lower than the current forecast.
The annual symposium will be held in US Jackson Hole on August 22-24. Major US bankers attend this event. They will discuss the problems of the US and global economy. The event might affect the market.
August 23. US New Home Sales
July data on US New home sales come out at 14:00 GMT. Analysts expect a reading of 660 thousand. However, the sales have remained below this value for two months. In addition, the reading fell 7.4% over the previous quarter, which indicates a negative trend in the real estate sector.