Highlights
This week, financial markets will digest the election results in the UK where the main opposition Labour Party scored a landslide victory, ending 14 years of Conservative government, and also Sunday's final round of parliamentary elections in France where the far-right National Rally and its allies are set to win but may fail to secure a majority.
Markets will also look for fresh leads in the US presidential election in November after showing a split personality. Stocks keep rising, looking at the bright side of the economic picture and even having spillover effects on Japan where the economy is stagnant, while bonds remain volatile, concerned over a possible higher government debt and inflation under a new regime.
After seeing cooling labor market conditions in both the US and Canada last week, investors will focus on Federal Reserve Chair Jerome Powell's semi-annual monetary policy testimony before the Senate Banking Committee on Tuesday and the US CPI data for June due on Thursday that is forecast to show easing to 3.1 percent from May's 3.3 percent.
Elsewhere, the Reserve Bank of New Zealand is widely expected to maintain its policy interest rate at 5.50 percent for an eighth straight meeting on Wednesday, when the Bank of Korea is also seen keeping its own policy rate at a restrictive level of 3.50 percent for a 12th consecutive meeting. Both central banks are trying to bring inflation back to their targets, in a range of 1.0 percent to 3.0 percent for the RBNZ and 2 percent for the Bok.
Monday's data calendar is thin.
In Germany, the seasonally adjusted merchandise trade balance is forecast to narrow to a €20.3 billion surplus in May from a €22.1 billion surplus in April, which was little changed from March's revised €22.2 billion.
US consumer credit is expected to increase a modest $8.3 billion in May versus a lower-than-expected rise of $6.4 billion in April.
Markets will also look for fresh leads in the US presidential election in November after showing a split personality. Stocks keep rising, looking at the bright side of the economic picture and even having spillover effects on Japan where the economy is stagnant, while bonds remain volatile, concerned over a possible higher government debt and inflation under a new regime.
After seeing cooling labor market conditions in both the US and Canada last week, investors will focus on Federal Reserve Chair Jerome Powell's semi-annual monetary policy testimony before the Senate Banking Committee on Tuesday and the US CPI data for June due on Thursday that is forecast to show easing to 3.1 percent from May's 3.3 percent.
Elsewhere, the Reserve Bank of New Zealand is widely expected to maintain its policy interest rate at 5.50 percent for an eighth straight meeting on Wednesday, when the Bank of Korea is also seen keeping its own policy rate at a restrictive level of 3.50 percent for a 12th consecutive meeting. Both central banks are trying to bring inflation back to their targets, in a range of 1.0 percent to 3.0 percent for the RBNZ and 2 percent for the Bok.
Monday's data calendar is thin.
In Germany, the seasonally adjusted merchandise trade balance is forecast to narrow to a €20.3 billion surplus in May from a €22.1 billion surplus in April, which was little changed from March's revised €22.2 billion.
US consumer credit is expected to increase a modest $8.3 billion in May versus a lower-than-expected rise of $6.4 billion in April.
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.
