This week's calendar sees the release on Friday of the last eurozone inflation print before September’s ECB meeting, setting the scene for the expected monetary stimulus package. Inflation has been falling recently and with the core print stuck around 1%, the July release will likely bring more ammunition to the doves
German economic data is also not expected to bring any positive surprises with the main business index (IFO) set to fall further on the back of ongoing geopolitical uncertainty.
Stateside sees the Fed’s favoured measure of inflation, the PCE data, also released on Friday. The core inflation rate is expected to be unchanged at 1.6%, although there is a chance we could see a small tick up, similar to the CPI print which was driven by higher goods inflation.
We also get a consumer confidence reading, Q2 GDP print and preliminary capex orders for July. These latter figures may be interesting in light of the ongoing manufacturing slowdown and trade war uncertainty.
UK MPs will return from their summer sojourn next week so we will be on the look out for some clues on how MPs plan to use the first couple of weeks back after summer as the battle to avert a ‘no deal’ Brexit on 31 October begins.
Here's what's on the calendar across global markets this week:
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