This week will be crucial for investors as they navigate economic data, rate decisions, and earnings reports. The inflation data, particularly the US Core PCE Price Index, could influence expectations for future rate cuts. Here’s a breakdown of the major events to keep an eye on:
Central Bank Decisions::
- Wednesday: The Bank of Canada (BoC) is widely expected to cut interest rates by 25 basis points. This could weaken the Canadian dollar (CAD) and raise concerns about growth in the US.
Purchasing Managers’ Index (PMI):
- Wednesday: Flash PMI data for manufacturing and services sectors in the eurozone, UK, and US will be released. Watch for signs of economic slowdown, which could impact interest rate decisions by the European Central Bank (ECB) and the Federal Reserve (Fed).
US Economic Data:
- Thursday: The first estimate for US GDP growth in Q2 2024 is expected to show acceleration. A stronger-than-expected reading could bolster the US dollar (USD).
- Friday: The Federal Reserve’s preferred inflation measure, the Core PCE Price Index for June, will be released. A further slowdown in price pressures is anticipated. This could solidify expectations for a rate cut by the Fed in September.
Earnings Season Kickoff:
- Tuesday: Tech giants Tesla and Google report their Q2 earnings, along with Coca-Cola and Texas Instruments. Strong results could boost investor confidence.
- Wednesday: International Business Machines (IBM) and AT&T release earnings.
- Thursday: Watch for earnings reports from AstraZeneca.
- Friday: 3M releases its quarterly results.
Other Events:
- Monday: China may announce changes to key interest rates, potentially impacting Asian markets.
- Wednesday: Existing Home Sales data and the Richmond Manufacturing Index are released in the US.
- Thursday: The US releases its quarterly Advance GDP and Durable Goods numbers. A speech by ECB President Christine Lagarde is also expected.
- Friday: Tokyo Core CPI data and revised University of Michigan Consumer Sentiment and Inflation Expectations are on tap. The G20 meeting in Rio de Janeiro may also generate market updates.
Categories: Market News
