Highlights
The annual inflation rate in the UK is expected to ease further to 6.8 percent in July, largely due to lower energy prices, after moderating to 7.9 percent in June from 8.7 percent in May. The monthly rate is seen falling 0.5 percent after rising 0.1 percent in June.
The UK producer inflation data is forecast to show that output prices fell 0.4 percent on the month in July after a 0.3 percent drop in June. Input costs are expected to be flat following a 1.3 percent drop.
For the Eurozone, no revisions are expected to the preliminary flash second quarter GDP data, leaving a 0.3 percent quarterly gain and a 0.6 percent yearly growth rate.
The region's industrial production in June is expected to fall 0.6 percent on the month after rising 0.2 percent in May.
Among key US data, housing starts in July are expected to post a limited rebound to a 1.455 million annualized rate after slowing from 1.559 million in May to 1.434 million in June. Permits, which slowed from 1.496 million to 1.440 million in June, are similarly expected to rise to 1.464 million.
Industrial production is forecast to rebound 0.3 percent on the month in July after falling 0.5 percent for two straight months in June. Manufacturing output is seen unchanged after falling 0.3 percent and 0.2 percent. Capacity utilization is expected to rise to 79.1 percent from 78.9 percent.
At 2 p.m. EDT (1800 GMT), the Federal Reserve will release the minutes of its July 25-26 meeting at which policymakers unanimously decided to raise the federal funds target rate by 25 basis points to a 22-year high of a 5.25 to 5.50 percent range, as expected. The official statement was virtually unchanged outside of the language regarding the rate move. There was a slight upgrade in the assessment of the economy from modest to moderate, but no change in"elevated" inflation.
Canadian housing starts are expected to slow back to a 245,500 annual rate in July versus June's 281,373, which was much stronger than expected.
Japanese export values are forecast to have posted their first year-over-year decline in 29 months in July, down 1.0 percent, amid slowing global demand and despite recovering automobile shipments. Import values are seen falling for the fourth straight month, down 15.2 percent, as energy and commodities prices have generally eased. As a result of a sharp drop in imports, Japan is expected to record a second straight month of a trade surplus, worth ¥43.7 billion in July, after ending 22 months of a deficit in June and recovering from a record shortfall in January.
Machinery orders in Japan, the key leading indicator of business investment, are forecast to have rebounded 4.0 percent on the month in June after slumping 7.6 percent in May, backed by the services sector, but core orders are expected to slump on quarter in April-June versus the official forecast of a solid gain. Core private orders (excluding those from electric utilities and for ships) are seen down 6.9 percent on year for a fourth straight drop after a 8.7 percent fall in May.
Australia's jobs data is expected to show employment grew 15,000 in July, slowing from June's 32,600 and May's 76,600, both of which were much higher than expected. Unemployment is expected to hold at 3.5 percent.
The UK producer inflation data is forecast to show that output prices fell 0.4 percent on the month in July after a 0.3 percent drop in June. Input costs are expected to be flat following a 1.3 percent drop.
For the Eurozone, no revisions are expected to the preliminary flash second quarter GDP data, leaving a 0.3 percent quarterly gain and a 0.6 percent yearly growth rate.
The region's industrial production in June is expected to fall 0.6 percent on the month after rising 0.2 percent in May.
Among key US data, housing starts in July are expected to post a limited rebound to a 1.455 million annualized rate after slowing from 1.559 million in May to 1.434 million in June. Permits, which slowed from 1.496 million to 1.440 million in June, are similarly expected to rise to 1.464 million.
Industrial production is forecast to rebound 0.3 percent on the month in July after falling 0.5 percent for two straight months in June. Manufacturing output is seen unchanged after falling 0.3 percent and 0.2 percent. Capacity utilization is expected to rise to 79.1 percent from 78.9 percent.
At 2 p.m. EDT (1800 GMT), the Federal Reserve will release the minutes of its July 25-26 meeting at which policymakers unanimously decided to raise the federal funds target rate by 25 basis points to a 22-year high of a 5.25 to 5.50 percent range, as expected. The official statement was virtually unchanged outside of the language regarding the rate move. There was a slight upgrade in the assessment of the economy from modest to moderate, but no change in"elevated" inflation.
Canadian housing starts are expected to slow back to a 245,500 annual rate in July versus June's 281,373, which was much stronger than expected.
Japanese export values are forecast to have posted their first year-over-year decline in 29 months in July, down 1.0 percent, amid slowing global demand and despite recovering automobile shipments. Import values are seen falling for the fourth straight month, down 15.2 percent, as energy and commodities prices have generally eased. As a result of a sharp drop in imports, Japan is expected to record a second straight month of a trade surplus, worth ¥43.7 billion in July, after ending 22 months of a deficit in June and recovering from a record shortfall in January.
Machinery orders in Japan, the key leading indicator of business investment, are forecast to have rebounded 4.0 percent on the month in June after slumping 7.6 percent in May, backed by the services sector, but core orders are expected to slump on quarter in April-June versus the official forecast of a solid gain. Core private orders (excluding those from electric utilities and for ships) are seen down 6.9 percent on year for a fourth straight drop after a 8.7 percent fall in May.
Australia's jobs data is expected to show employment grew 15,000 in July, slowing from June's 32,600 and May's 76,600, both of which were much higher than expected. Unemployment is expected to hold at 3.5 percent.
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.
