Investors eagerly await global economic data

European markets are heading for a mixed open on Monday ahead of a busy week of economic data releases around the world. Stronger-than-expected US economic data renewed fears that the Federal Reserve could tighten policy further. Markets are now seeing a nearly 50% chance of a rate increase in November after an anticipated pause in September. Traders will get a reading of consumer and producer inflation reports on Wednesday and Thursday.  US stock futures held steady on Monday as investors look ahead to key inflation data this week that could influence the path for US monetary policy. Last week, the Dow fell 0.75%, the S&P 500 dropped 1.29% and the Nasdaq Composite tumbled 1.93%. 

Summary for 11.09.2023 

• On Friday stocks finished a down week on a high note. The Dow gained 75.86 points, or 0.22%, to close at 34,576.59, while the S&P edged higher by 0.14% to snap a three-day losing streak and finish at 4,457.49.  
• It will be a busy week in the US, with the inflation rate and retail sales data taking centre stage, followed by the University of Michigan consumer confidence index, industrial production figures, and export and import prices.  

• Investors will also be eagerly awaiting the European Central Bank’s interest rate decision and the ZEW Economic Sentiment Index for Germany.  
• In the United Kingdom, the focus will be on the unemployment rate, earnings data, July’s GDP growth figures, industrial production, and foreign trade data.  
• In China, key indicators to watch include August’s industrial production, retail sales, unemployment rates, car sales, loan growth, and fixed asset investments.  
• Brazil and India will unveil their inflation rates, and Australia will release the NAB Business Confidence Index. 
• Major technology firms Oracle and Adobe will report earnings on Monday and Thursday, respectively. 

• Asian currencies were in focus on Monday, with the Japanese yen rallying following remarks by the Bank of Japan governor that were seen as hawkish. The Chinese yuan appreciated after authorities there sent another forceful signal. 
• China’s consumer prices rose by 0.1% yoy in August 2023, compared with market forecasts of a 0.2% gain and after the first drop in over 2 years of 0.3% in July. Non-food prices picked up while the cost of food fell further. Meantime, producer prices shrank 5%, the least in 5 months. 
• Hong Kong property stocks suffered their biggest selloff in seven months, hit by disappointing earnings at the city’s top builder and a major bank’s reported plan to raise mortgage rates. 
• WTI crude futures fell below $87 per barrel on Monday on a likely technical correction, while traders continued to assess various demand and supply factors. 
• Leaders of the world’s 20 big economies ended a summit in the Indian capital on Sunday overcoming deep divisions over the war in Ukraine to produce a consensus document and move forward on issues such as overhauling institutions like the World Bank.