It was another lively week for financial markets last week, as volatility remained high, with fundamentals and geopolitics mixing to keep traders on their toes.
The Middle East continued to be a major focus on the geopolitical front, while a sharply declining relationship between the US and Ukraine also influenced markets. Strong data out of the US added to the mix on the fundamental side of things, although the higher-than-expected inflation prints ultimately did not move the dial too much on Fed rate hike expectations this month.
The week ahead is much quieter on the data front, especially out of the US. However, there are some major inflation updates due out of other major economies that will add volatility to their respective markets, while geopolitical updates are also set to remain a major focus for investors. Earnings season continues in earnest as well, with some major companies due to update the market on Q3 performance, which should keep stock markets lively.
Here is our usual day-by-day breakdown of the major risk events this week:
The Asian session will see a strong focus on Chinese markets on Monday, with a big data drop featuring GDP, Industrial Production and Retail Sales due out midway through the day. Later in the day, we have the first major inflation number of the week out early in the New York session, when Canadian CPI numbers are released.
Chinese markets are again in focus on Tuesday, with the key Loan Prime Rate updates due out, while the UK market will draw strong attention early in the European session, when key Employment data is released.
It is a quiet Asian session on Wednesday; however, UK markets will again feature strongly in the London session, with key CPI and PPI numbers set for release, as well as a scheduled speech from Bank of England Governor Andrew Bailey. The New York session will see attention on the oil market, with the US Crude Oil inventory data due out.
The event calendar kicks off very early on Thursday, with key New Zealand CPI numbers due out shortly after the Asian open. There is little else of note due for the rest of the day, although the usual Weekly Unemployment Claims numbers will be released in the US a couple of hours into the New York trading day.
There is a raft of Flash Manufacturing and Services data due out across the day on Friday, with updates due from Australia, France, Germany, the EU, the UK and the US. Retail Sales numbers are also due out of the UK early in the London session, while the New York day also sees the Revised University of Michigan Consumer Sentiment and Inflation Expectations data releases.
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