Global financial markets ended the week positively, driven by central bank updates from Jackson Hole, with major US indices gaining over 1% as Fed Chair Jerome Powell announced an easing cycle starting next month. The upcoming week has a slightly busier macroeconomic calendar, with key updates on inflation from the US and Eurozone. Monday may see market gaps as the Jackson Hole symposium concludes. The week features potential volatility from events like China’s Loan Prime Rate announcement, Canada’s CPI data, FOMC minutes, and global Flash PMI releases, culminating in central bank speeches at Jackson Hole.

Global Financial Markets Recap:

• Major US indices ended last week on a high note, with the Dow, S&P, and Nasdaq gaining over 1%.
• Central bank updates from Jackson Hole drove the positive momentum.
• Jerome Powell confirmed that the Federal Reserve’s easing cycle would begin next month.

This Week’s Macroeconomic Data:

• A busier macroeconomic data calendar, with key updates from the US and Eurozone, particularly on inflation.
• Traders may see market gaps on Monday as the Jackson Hole symposium wraps up, but overall sentiment remains positive.

Day-by-Day Breakdown:

Monday:

• Quiet start to the week with minimal events scheduled.
• Few data releases in the New York session.
• Fed member Christopher Waller speaks early in the New York session, potentially influencing rate cut expectations.

Tuesday:

• Potential volatility in Asian markets.
• China announces any changes in the Loan Prime Rates.
• RBA’s Monetary Policy Meeting Minutes released.
• European session: SNB’s Thomas Jordan speaks.
• New York session: Canadian CPI data released, followed by speeches from the Fed’s Bostic and Barr.

Wednesday:

• Minimal scheduled events across all sessions.
• Main focus on the release of the FOMC’s latest meeting minutes at the end of the US day.

Thursday:

• Flash Manufacturing and Service PMI data releases throughout the day from Australia, France, Germany, the UK, and the US.
• Weekly US unemployment claims numbers due in the New York session.

Friday:

• Early focus on New Zealand’s latest Retail Sales numbers in the Asian session.
• Long wait until the US session for the start of the Jackson Hole Symposium.
• Speeches from Fed’s Jerome Powell and Bank of England’s Andrew Bailey.
• Canadian Retail Sales numbers also released prior to central bank updates.