Welcome to Extreme Investor Network, your ultimate source for all things Stock Market, trading, and financial news. We are excited to share with you some exclusive insights into the latest updates in the world of finance. Let’s dive into the recent developments and key events shaping the global economy.
UK GDP Rose in August
In the UK, real GDP grew by 0.2% in August, signaling a return to growth after two months of stagnation. This news comes as the Chancellor of the Exchequer prepares to deliver the UK Annual Budget Release. While the UK economy is on track for growth in Q3, the pace is expected to be slower than in the first half of the year.
The Week That Is:
UK
This week will be crucial for the UK economy, with significant economic metrics set to be released. Market participants are closely monitoring data that could impact the likelihood of a rate cut in the upcoming months. The FP Markets Research Team suggests that there is an 80% probability of a 25bp cut at the November meeting, based on recent dovish comments from BoE Governor Andrew Bailey.
Investors will be paying close attention to key data points such as jobs data, CPI inflation numbers, and retail sales data throughout the week. The outcomes of these reports could influence market sentiment and potentially lead to currency fluctuations.
US
In the US, the calendar for the week is relatively light following strong CPI inflation and impressive jobs data for September. Retail sales data is scheduled to be released on Thursday, with analysts expecting a moderate increase. The outcome of this report could impact the US dollar and overall market direction.
Additional data from regional manufacturing surveys will provide further insights into the state of the US economy. Market participants will be looking for signs of strength or weakness in the manufacturing sector to gauge future economic performance.
Canada
Canadian CPI inflation numbers for September will be in focus, with expectations for a slowdown at the headline level. The Bank of Canada’s preferred measures of inflation will also be closely monitored to assess the overall price dynamics in the Canadian economy. This week’s inflation data could play a significant role in the central bank’s decision-making process regarding rate cuts.
New Zealand
Inflation data from New Zealand will be crucial for determining the Reserve Bank of New Zealand’s next steps. The RBNZ is facing decisions on whether to initiate a rate cut and the magnitude of the adjustment. Market participants will be looking for signals from the inflation data to gauge the central bank’s future monetary policy stance.
Australia
Australia’s focus this week will be on the September jobs market report, which could impact the Australian dollar and rate pricing expectations. The Reserve Bank of Australia is expected to maintain its current rate amid stable inflation and employment growth. Any surprises in the jobs data could lead to shifts in the market sentiment towards the Australian economy.
Europe
The ECB is widely expected to reduce policy rates this week, following weaker CPI inflation data and soft growth metrics. With a fully priced-in rate cut, investors will be monitoring the ECB’s guidance for clues on future rate adjustments. The rate cut decision and the central bank’s communication could influence market dynamics in the Eurozone.