Thomas Watts, Investment Analyst, abrdn, comments on the economic data releases this week;
“With another scorching and sunny week predicted for the UK, another busy week for market watchers kicks off as Germany releases its business climate results. The survey is highly respected due to its large sample size and historic correlation with German and wider Eurozone economic conditions meaning that it often tends to create a hefty market impact upon release. About 9,000 businesses which asks respondents to rate the relative level of current business conditions and expectations for the next 6 months.
“With inflation also hotting up in Canada, the nation’s central bank was recently forced to raise rates further, having paused their hiking cycle for 6 months previously. Tuesday brings us Consumer Price Index numbers for the country and should provide fascinating reading, especially if the data shows the central bank has further work to do in order to stabilise prices.
“The middle of the week will be characterised by yet more central banks, chief rate setters from the US, Japan, Europe and our own Bank of England are all set to participate in a panel discussion titled “Policy panel” at the European Central Bank Forum on Central Banking, in Sintra. With so many influential figures in the world of finance speaking, investors will scrutinise these speeches as they are often used to drop subtle clues regarding future monetary policy and interest rate shifts.
“Wrapping up the week on Friday, we have the release of US monthly Core PCE Price Index numbers. The data differs from normal inflation readings in that it only measures goods and services targeted towards and consumed by individuals. Adding even more importance to the figures is that it reportedly gets the US Federal Reserve a little hot under the collar, with the numbers reportedly being the preferred piece of data for the central bank when gauging inflation.”
