On Monday 19th: Nothing
On Tuesday 20th: Australian RBA Meeting Minutes, Canadian Inflation Rate YoY and Japanese Balance of Trade
On Wednesday 21th: American FOMC Minutes
On Thursday 22th: French, German, European, British and US Services and Manufacturing PMI Flash, and Japanese Inflation Rate YoY, and Jackson Hole Symposium
On Friday 23th: Jackson Hole Symposium
Monday 19th of August
Major Earnings Releases:
- Zoom
Tuesday 20th of August
The Reserve Bank of Australia (RBA) decided to maintain its cash rate unchanged at 4.35% during its August meeting, marking the sixth consecutive hold. While inflation remains above the central bank's target range of 2-3%, with a projected return to the midpoint in 2026, the RBA adopted a cautious stance.
The bank reiterated its commitment to monitoring inflation closely and emphasised the need for ongoing vigilance against upside risks. However, it also acknowledged the growing uncertainty surrounding the economic outlook. Sluggish GDP growth, rising unemployment, and mounting business pressures have created a complex landscape for policymakers.
Market participants will await the release of the meeting minutes for further insights into the central bank's thinking and potential future policy adjustments when the report is published at 01:30 AM GMT.
Canada's annual inflation rate continued its downward trajectory in June 2024, easing to 2.7% from the previous month's 2.9%. This decline surprised market analysts who had anticipated a steady rate of 2.9%.
The result marked a return to the disinflationary trend observed earlier in the year and aligned with the Bank of Canada's projections for inflation to remain near the 3% level during the first half of 2024.
Market participants anticipate the inflation rate to remain stable at 2.7% in July, with the official data scheduled for release at 12:30 PM GMT.
Japan recorded a trade surplus of JPY 224.04 billion in June 2024, defying market expectations of a deficit and marking a significant improvement from the previous year's surplus of JPY 36.52 billion. This result marks only the second trade surplus for the country so far this year, driven by stronger export growth compared to imports.
Market participants will closely monitor the July trade balance data, scheduled for release at 11:50 PM GMT, to assess the sustainability of the trade surplus.
Major Earnings Releases:
- Lowe's
Wednesday 21th of August
The Federal Reserve maintained its target federal funds rate at a restrictive level of 5.25%-5.50% during its July meeting,marking the eighth consecutive decision to hold rates steady. While acknowledging some progress toward the 2% inflation goal, policymakers emphasised the ongoing challenge of bringing inflation down to the target level.
The central bank expressed confidence in the economy's resilience, noting continued solid economic growth. However,the Fed remains cautious, emphasising the need to achieve a sustainable return to price stability before considering rate cuts.
Market participants will closely analyse the minutes of the FOMC meeting, scheduled for release at 06:00 PM GMT, for further clues on the Fed's policy trajectory and outlook for the economy.
Major Earnings Releases:
- TJX Companies
Thursday 22th of August
Japan's annual inflation rate remained unchanged at 2.8% in June 2024, marking the second consecutive month at this level. This represents the highest inflation rate since February. While the rate has stabilised, it remains significantly elevated compared to historical norms.
Market participants anticipate a slight uptick in inflation for July, with expectations for the annual rate to reach 2.9%. The official data is scheduled for release at 11:30 PM GMT.
The French manufacturing sector continued its downward trajectory in July 2024, with the France Manufacturing PMI falling to 44 from 45.4 in the previous month. This marks the 18th consecutive month of contraction and the steepest decline since January.
In contrast, the France Services PMI stabilised at 50.1 in July, ending a two-month contractionary period. While slightly below preliminary estimates of 50.7, the stabilisation was attributed to increased activity levels driven by the Olympic Games and the conclusion of the election period.
Market participants will closely monitor the release of these economic indicators for further insights into the French economy's performance when the reports are released at 7:15 AM GMT.
The Eurozone manufacturing sector continued to struggle in July 2024, with the Manufacturing PMI remaining unchanged at 45.8. This confirmed the year-to-date low and signalled a persistent contraction in the industry. While a slight upward revision from the preliminary estimate was noted, the overall trend remains negative, with major economies experiencing varying degrees of downturn.
In the services sector, growth momentum also weakened. The Eurozone Services PMI declined to 51.9 in July from 52.8 in June, aligning with preliminary estimates but falling short of market expectations. This marks the slowest pace of expansion in the Eurozone's services activity in four months.
Market participants will closely monitor these indicators for further insights into the overall health of the Eurozone economy when the reports are released at 08:00 AM GMT.
The UK manufacturing sector experienced a resurgence in July 2024, with the S&P Global UK Manufacturing PMI revised upward to 52.1. This marks the sharpest expansion in the sector since July 2022, driven by accelerated production growth.
Meanwhile, the UK services sector continued its expansionary trend, with the S&P Global UK Services PMI edging higher to 52.5 in July. Although a slight upward revision from the preliminary estimate, the overall pace of growth remained steady, reflecting nine consecutive months of expansion.
Market participants will closely monitor these indicators for further insights into the UK's economic trajectory when the reports are released at 08:30 AM GMT.
The US services sector continued to expand in July 2024, albeit at a slightly slower pace. The S&P Global US Services PMI was revised downward to 55, indicating a moderation from the previous month's reading of 55.3. While the sector remains in expansionary territory, the rate of growth has slowed.
In contrast, the US manufacturing sector experienced a further decline in July. The S&P Global US Manufacturing PMI was revised slightly upward to 49.6 but remained below the crucial 50 mark, signalling a contraction in business conditions. This represents the lowest reading of the year for the sector.
Market participants will closely monitor these indicators for further insights into the overall health of the US economy when the data is released at 01:45 PM GMT.
Major Earnings Release:
- Weibo Corporation
- JD.com
- AEGON
- BAIDU
- Dollar Tree
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