Highlights
In North America, the Bank of Canada became the first Group of Seven central bank to begin lowering interest rates after a series of rate hikes to bring inflation back to target this cycle and followed up with a back-to-back 25-basisi point cut in its policy rate in July.
In Europe, the Swiss National Bank made a surprise move in March to cut its key interest rate, becoming the first major central bank to ease rates during the current cycle. In May. Sweden's Riksbank conducted its first rate reduction in eight years by lowering its key rate by 25 basis points to 3.75 percent. It is widely expected to cut it to 3.50 percent on Tuesday.
In Germany, producer prices are expected to rise 0.2 percent on the month in July after rising at the same rate in June. From a year earlier, the PPI is expected to fall 0.7 percent versus 1.6 percent contraction in June.
In the Eurozone harmonised index of consumer prices (HICP) data for July, no revisions are expected, leaving a 2.6 percent annual inflation rate, up from June's final 2.5 percent, and a 2.8 percent narrow core, unchanged from last time.
Canada's annual inflation rate is forecast to ease further to 2.5 percent in July after moderating to a lower-than-expected 2.7 percent in June from May's 2.9 percent.
Atlanta Federal Reserve Bank President Raphael Bostic will participate in a fireside chat before hybrid"Innovating for Inclusion" forum at the Federal Reserve Bank of Atlanta at 1:35 p.m. EDT (1735 GMT).
Federal Reserve Vice Chair for Supervision Michael Barr will participate in a"Cybersecurity" discussion before the Joint Financial and Banking Information Infrastructure Committee-Financial Services Sector Coordinating Council Meeting at 2:45 p.m. EDT (1845 GMT).
Japanese export values are forecast to jump 12.9 percent for an eighth straight year-over-year increase in July, led by demand for vehicles, semiconductors and chip-making equipment, accelerating from a 5.4 percent gain in June, due largely to the base effect of a 0.3 percent drop in July 2023 versus a 1.5 percent rise in June 2023. Import values are also expected to surge 16.9 percent for a fourth straight rise, led by crude oil, drugs and computers, after a 3.2 percent rise in June, as the relatively weak yen is keeping import costs high.
The trade balance is forecast to show a ¥326.5 billion deficit. It would be the first deficit in two months after a surprise ¥223.99 billion surplus in June and compared with a ¥36.5 billion surplus in June 2023 and a record shortfall of ¥3,506.43 billion (¥3.51 trillion) hit in January 2023.
In Europe, the Swiss National Bank made a surprise move in March to cut its key interest rate, becoming the first major central bank to ease rates during the current cycle. In May. Sweden's Riksbank conducted its first rate reduction in eight years by lowering its key rate by 25 basis points to 3.75 percent. It is widely expected to cut it to 3.50 percent on Tuesday.
In Germany, producer prices are expected to rise 0.2 percent on the month in July after rising at the same rate in June. From a year earlier, the PPI is expected to fall 0.7 percent versus 1.6 percent contraction in June.
In the Eurozone harmonised index of consumer prices (HICP) data for July, no revisions are expected, leaving a 2.6 percent annual inflation rate, up from June's final 2.5 percent, and a 2.8 percent narrow core, unchanged from last time.
Canada's annual inflation rate is forecast to ease further to 2.5 percent in July after moderating to a lower-than-expected 2.7 percent in June from May's 2.9 percent.
Atlanta Federal Reserve Bank President Raphael Bostic will participate in a fireside chat before hybrid"Innovating for Inclusion" forum at the Federal Reserve Bank of Atlanta at 1:35 p.m. EDT (1735 GMT).
Federal Reserve Vice Chair for Supervision Michael Barr will participate in a"Cybersecurity" discussion before the Joint Financial and Banking Information Infrastructure Committee-Financial Services Sector Coordinating Council Meeting at 2:45 p.m. EDT (1845 GMT).
Japanese export values are forecast to jump 12.9 percent for an eighth straight year-over-year increase in July, led by demand for vehicles, semiconductors and chip-making equipment, accelerating from a 5.4 percent gain in June, due largely to the base effect of a 0.3 percent drop in July 2023 versus a 1.5 percent rise in June 2023. Import values are also expected to surge 16.9 percent for a fourth straight rise, led by crude oil, drugs and computers, after a 3.2 percent rise in June, as the relatively weak yen is keeping import costs high.
The trade balance is forecast to show a ¥326.5 billion deficit. It would be the first deficit in two months after a surprise ¥223.99 billion surplus in June and compared with a ¥36.5 billion surplus in June 2023 and a record shortfall of ¥3,506.43 billion (¥3.51 trillion) hit in January 2023.
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.
