Very data light week ahead and with Eid Al Adha its expected that the week will be quiet however with three rate announcements due that could change.
Fed Chairman Powell said last week that inflation was “uncomfortably high” but that feels it is transitory which was enough to cause a selloff in equity markets.
ECB and Japan policymakers are unlikely to create waves in the market as rates are not expected to change but the commentary may have some impact. China PBoC could reduce interest rate as they have become markedly dovish recently.
Britain is rolling back the legal framework around Covid on Monday despite rapidly rising infection rates perhaps showing an “acceptance” of high infections so long as hospitalisations remain low.
PMI’s abound on Friday but as they are a private survey perhaps they don’t have the gravitas that official inflation reports do but with the current market obsession with inflation note will be taken.
In the commodity world oil has come off its highs as the UAE / Saudi standoff found a compromise and metals continued to bounce in recent ranges except for platinum which rallied after the riots in South Africa led to fears that a winter of discontent and labour strife could reduce output from the world’s largest supplier and palladium which experienced a market vacuum and dropped $200 over the week.
Date | Country | Figures | Expected | Previous |
July 20 | CHINA | PBoC Rate Decision |
|
|
| USA | API Weekly Crude Oil Stock |
| -4.079M |
July 21 | USA | EIA crude oil stocks |
| -7.89M |
July 22 | EUR | ECB rate decision |
|
|
| EUR | ECB Monetary Policy statement |
|
|
| USA | Initial Jobless claims |
| 360k |
July 23 | GBP | Retail sales (YoY June) | 29% | 24.6% |
| EUR | Markit PMI (Jul) | 60.1 | 59.5 |
| GBP | Markit PMI (Jul) |
| 62.4 |
| USA | Markit PMI (Jul) |
| 63.7 |
The content of this Market Commentary is provided for general information only. It is not intended to amount to advice on which you should rely. In particular, neither this Market Commentary nor any other content of our website should be construed as investment advice. The information contained in this Market Commentary is not, and should not be read as, an offer, recommendation or inducement to engage in investment activity. In no event shall we be liable for any damages resulting from reliance on or use of any information contained in this Market Commentary. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content of this Market Commentary.
Although we make reasonable efforts to ensure that that the information in this Market Commentary is accurate as at the date on which it is published, we make no representations, warranties or guarantees, whether express or implied, that it is accurate, complete or up to date.