Weekly Market Forecast: US PCE, Global PMIs, RBA, SNB, and Australian CPI
As we look ahead to the upcoming week, there are several key events and data releases that will likely impact the global markets. From central bank policy announcements to economic indicators, investors will be closely monitoring the developments to gauge the direction of various economies. Let’s take a closer look at what to expect in the week ahead.
Monday: Market Holiday in Japan
The week kicks off with a market holiday in Japan for the Autumnal Equinox. However, investors will still have plenty to watch as the Eurozone, UK, and US release their Flash PMI data for September, providing insights into the health of the manufacturing and services sectors. Additionally, the US National Activity Index for August will be released, shedding light on the overall economic activity in the country.
Tuesday: RBA Policy Announcement
On Tuesday, all eyes will be on the Reserve Bank of Australia (RBA) as they make their policy announcement. With economists unanimously forecasting no change in rates, the focus will be on the central bank’s outlook on inflation and economic growth. In addition, Germany will release its Ifo data for September, while the US will publish its Consumer Confidence and Richmond Fed reports for the same month.
Wednesday: Riksbank and CNB Policy Announcements
Midweek will see the Riksbank and Czech National Bank (CNB) making their policy announcements. The Riksbank is expected to deliver a 25bps cut to 3.25%, with markets fully pricing in such a move. Meanwhile, Australia will release its CPI data for August, providing insights into inflation trends. The US will also publish Building Permits Revision, New Home Sales, and UK CBI Trends data.
Thursday: SNB and Banxico Policy Announcements
Thursday will bring policy announcements from the Swiss National Bank (SNB) and Bank of Mexico (Banxico). The SNB is expected to continue its easing cycle with another 25bps cut, while Banxico may announce another 25bps rate cut following recent data showing cooling inflation and soft economic indicators. Additionally, various economic reports from Germany, Norway, Sweden, Eurozone, and the US will be released, including Durable Goods, GDP, PCE Prices, and Initial Jobless Claims.
Friday: Japanese LDP Party Leadership Race and Economic Indicators
The week concludes with Japan’s ruling LDP party holding an election for the party’s next president, who will take over as the country’s Prime Minister. The outcome of the election will have implications for economic policy and market sentiment in Japan. Additionally, economic indicators such as Japanese Tokyo CPI, Chinese Industrial Profits, German Unemployment, Norwegian Unemployment, and US PCE data will be released, providing further insights into the global economic landscape.
As we navigate through the week ahead, investors will be closely monitoring these events and data releases to assess the current economic conditions and potential policy changes. Stay tuned for updates and analysis as the market reacts to the latest developments.
