Highlights
This week, Canadian markets are closed on Monday for the Canada Day public holiday and US markets on Thursday for the Independence Day, but their closely watched jobs data will be released on the first Friday of the month as usual. Employment growth in both countries is expected to slow in June. The unemployment rate in the US is seen unchanged at 4.0 percent while the rate in Canada is likely to tick up to 6.3 percent from 6.2 percent.
There are no policy meetings at major central banks but the minutes of their recent meetings will be issued by the Reserve Bank of Australia on Tuesday, the Federal Reserve on Wednesday and the European Central Bank on Thursday.
On the political calendar, the UK will hold general elections on Thursday. Polls have shown the opposition Labour Party is set to score a landslide win to end 14 years of Conservative rule.
Among data due on Monday, India's manufacturing PMI is expected to re-accelerate to 58.5 in June versus May's 57.5 which compared with expectations for 58.4.
The UK Nationwide house price index is forecast to edge up 0.1 percent on the month in June after rebounding in May with a larger-than-expected 0.4 percent increase that reversed April's 0.4 percent decline. The annual rate is seen slowing to 1.1 percent after rising sharply to 1.3 percent in May from 0.6 percent in April.
Swiss manufacturing activity is expected to remain in contraction in June, with the SVME purchasing managers' index seen staying below the neutral line of 50 and slipping to 45.3 after improving to 46.4 in April from 41.4 in March.
Germany's annual inflation rate is forecast to ease slightly to 2.3 percent in June from 2.4 percent in May but that would be just above April's 2.2 percent. The consensus for the HICP is 2.6 percent versus 2.8 percent in May and 2.4 percent in April.
The US final manufacturing PMI for June is expected to come in at 51.7, unchanged from the mid-month flash and 4 tenths higher than May.
After falling a half point in May to a lower-than-expected 48.7, the ISM manufacturing index that indicates the direction of activity is expected to rebound 4 tenths to a still sub-50 level of 49.1.
US construction spending is expected to increase 0.3 percent on the month in May versus April's 0.1 percent decline. From a year earlier, spending was up 10.0 percent in April.
In South Korea, consumer prices in June, which in May cooled from 2.9 to 2.7 percent, are expected to hold steady at 2.7 percent.
The Reserve Bank of Australia will release the minutes of its June 18 meeting at 11:30 a.m. AEST Tuesday (9:30 p.m. EDT Monday/0130 GMT Tuesday). At the meeting, the RBA left its policy rate at 4.35 percent for a fifth straight meeting, as expected, after raising it by 25 basis points to 4.35 percent from 4.10 percent in November and having left rates on hold at its previous four meetings.
Inflation is easing but has been doing so more slowly than previously expected and it remains high, the RBA said. The board expects that it will be some time yet before inflation is sustainably in the target range. Governor Michele Bullock told reporters that the board did discuss the case for increasing interest rates at this meeting but that the case for a cut was not considered. She also repeated that we're not ruling anything in or anything out at the moment.
There are no policy meetings at major central banks but the minutes of their recent meetings will be issued by the Reserve Bank of Australia on Tuesday, the Federal Reserve on Wednesday and the European Central Bank on Thursday.
On the political calendar, the UK will hold general elections on Thursday. Polls have shown the opposition Labour Party is set to score a landslide win to end 14 years of Conservative rule.
Among data due on Monday, India's manufacturing PMI is expected to re-accelerate to 58.5 in June versus May's 57.5 which compared with expectations for 58.4.
The UK Nationwide house price index is forecast to edge up 0.1 percent on the month in June after rebounding in May with a larger-than-expected 0.4 percent increase that reversed April's 0.4 percent decline. The annual rate is seen slowing to 1.1 percent after rising sharply to 1.3 percent in May from 0.6 percent in April.
Swiss manufacturing activity is expected to remain in contraction in June, with the SVME purchasing managers' index seen staying below the neutral line of 50 and slipping to 45.3 after improving to 46.4 in April from 41.4 in March.
Germany's annual inflation rate is forecast to ease slightly to 2.3 percent in June from 2.4 percent in May but that would be just above April's 2.2 percent. The consensus for the HICP is 2.6 percent versus 2.8 percent in May and 2.4 percent in April.
The US final manufacturing PMI for June is expected to come in at 51.7, unchanged from the mid-month flash and 4 tenths higher than May.
After falling a half point in May to a lower-than-expected 48.7, the ISM manufacturing index that indicates the direction of activity is expected to rebound 4 tenths to a still sub-50 level of 49.1.
US construction spending is expected to increase 0.3 percent on the month in May versus April's 0.1 percent decline. From a year earlier, spending was up 10.0 percent in April.
In South Korea, consumer prices in June, which in May cooled from 2.9 to 2.7 percent, are expected to hold steady at 2.7 percent.
The Reserve Bank of Australia will release the minutes of its June 18 meeting at 11:30 a.m. AEST Tuesday (9:30 p.m. EDT Monday/0130 GMT Tuesday). At the meeting, the RBA left its policy rate at 4.35 percent for a fifth straight meeting, as expected, after raising it by 25 basis points to 4.35 percent from 4.10 percent in November and having left rates on hold at its previous four meetings.
Inflation is easing but has been doing so more slowly than previously expected and it remains high, the RBA said. The board expects that it will be some time yet before inflation is sustainably in the target range. Governor Michele Bullock told reporters that the board did discuss the case for increasing interest rates at this meeting but that the case for a cut was not considered. She also repeated that we're not ruling anything in or anything out at the moment.
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.
