Highlights
Germany's Gfk consumer climate index is expected to slip to minus 25.0 in August's report after unexpectedly stalling at minus 25.4 in July, which was down a full point to end eight straight gains. It will follow Tuesday's release that showed the Ifo business climate index posted its third straight monthly drop, down a further 1.3 points at a weaker-than-expected 87.3 in July from 88.6 (revised from 88.5) in June.
At 8:15 a.m. EDT (1415 CET/1215 GMT), the European Central Bank will release its monetary policy decision. The ECB is expected to hike rates for a ninth straight meeting, by 25 basis points for the refi rate to 4.25 percent. Inflation remains stubbornly high especially service sector prices, which accelerated further in June from 5.0 percent to 5.4 percent.
ECB President Christine Lagarde will hold a post-meeting news conference at 8:45 a.m. EDT (1445 CET/1245 GMT).
Among US data, durable goods orders are forecast to rise 0.5 percent on the month in July following June's 1.8 percent jump. Excluding transportation, orders are expected to edge 0.1 percent lower as are core capital goods orders, the latter climbing a sharp 0.7 percent in the two prior reports.
Second-quarter GDP is expected to slow to 1.5 percent annualized growth versus first-quarter growth of 2.0 percent. Personal consumption expenditures, after the first quarter's burst higher to plus 4.2 percent, are also expected to rise 1.5 percent.
The US goods deficit (Census basis) is expected to hold steady at $91.8 billion in June after narrowing by $5.6 billion in May to $91.9 billion.
New jobless claims for the July 22 week are expected to come in at 235,000 versus 228,000 in the prior week.
Wholesale inventories are expected to increase 0.1 percent on the month in the advance report for June that would follow no change in May.
Pending home sales in June, which in May fell 2.7 percent, are expected to rise 0.3 percent.
In South Korea, industrial production is expected to increase 0.5 percent on the month in June on top of an unexpected 3.2 percent jump in May.
Consumer inflation in Tokyo, the leading indicator of the national average, is forecast to have edged lower to 3.0 percent in July from 3.2 percent in June in the core CPI (excluding fresh food) and to 2.9 percent from 3.1 percent in total CPI despite continued upward pressures from processed food prices, after electricity charge markups led to a smaller drop in overall energy costs and pushed up the inflation rate slightly in June. The core-core CPI (excluding fresh food and energy) annual rate is seen unchanged at 3.8% in July after decelerating slightly to the rate in June from 3.9% in May as gains in household durable goods and hotel fees eased.
Australia's retail sales, which in May surprised on the upside with a 0.7 percent rise on the month, are expected to hold unchanged in June.
The Bank of Japan's policy board is expected to vote unanimously to maintain its monetary easing stance, keeping its zero to slightly negative interest rate targets along the yield curve and relatively large asset purchases to continue seeking stable 2 percent inflation and support sustainable wage growth. At the same time, the board will continue debating the costs and benefits of the yield curve control policy framework that was adopted in September 2016 and the negative overnight interest rate target introduced in January 2016.
The board is likely to repeat its recent statement that the bank will patiently continue with monetary easing while nimbly responding to developments in economic activity and prices as well as financial conditions. Governor Kazuo Ueda told reporters recently that there is still some distance before achieving sustainable and stable 2 percent inflation."
At 8:15 a.m. EDT (1415 CET/1215 GMT), the European Central Bank will release its monetary policy decision. The ECB is expected to hike rates for a ninth straight meeting, by 25 basis points for the refi rate to 4.25 percent. Inflation remains stubbornly high especially service sector prices, which accelerated further in June from 5.0 percent to 5.4 percent.
ECB President Christine Lagarde will hold a post-meeting news conference at 8:45 a.m. EDT (1445 CET/1245 GMT).
Among US data, durable goods orders are forecast to rise 0.5 percent on the month in July following June's 1.8 percent jump. Excluding transportation, orders are expected to edge 0.1 percent lower as are core capital goods orders, the latter climbing a sharp 0.7 percent in the two prior reports.
Second-quarter GDP is expected to slow to 1.5 percent annualized growth versus first-quarter growth of 2.0 percent. Personal consumption expenditures, after the first quarter's burst higher to plus 4.2 percent, are also expected to rise 1.5 percent.
The US goods deficit (Census basis) is expected to hold steady at $91.8 billion in June after narrowing by $5.6 billion in May to $91.9 billion.
New jobless claims for the July 22 week are expected to come in at 235,000 versus 228,000 in the prior week.
Wholesale inventories are expected to increase 0.1 percent on the month in the advance report for June that would follow no change in May.
Pending home sales in June, which in May fell 2.7 percent, are expected to rise 0.3 percent.
In South Korea, industrial production is expected to increase 0.5 percent on the month in June on top of an unexpected 3.2 percent jump in May.
Consumer inflation in Tokyo, the leading indicator of the national average, is forecast to have edged lower to 3.0 percent in July from 3.2 percent in June in the core CPI (excluding fresh food) and to 2.9 percent from 3.1 percent in total CPI despite continued upward pressures from processed food prices, after electricity charge markups led to a smaller drop in overall energy costs and pushed up the inflation rate slightly in June. The core-core CPI (excluding fresh food and energy) annual rate is seen unchanged at 3.8% in July after decelerating slightly to the rate in June from 3.9% in May as gains in household durable goods and hotel fees eased.
Australia's retail sales, which in May surprised on the upside with a 0.7 percent rise on the month, are expected to hold unchanged in June.
The Bank of Japan's policy board is expected to vote unanimously to maintain its monetary easing stance, keeping its zero to slightly negative interest rate targets along the yield curve and relatively large asset purchases to continue seeking stable 2 percent inflation and support sustainable wage growth. At the same time, the board will continue debating the costs and benefits of the yield curve control policy framework that was adopted in September 2016 and the negative overnight interest rate target introduced in January 2016.
The board is likely to repeat its recent statement that the bank will patiently continue with monetary easing while nimbly responding to developments in economic activity and prices as well as financial conditions. Governor Kazuo Ueda told reporters recently that there is still some distance before achieving sustainable and stable 2 percent inflation."
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
