Central bankers will gather in Wyoming this week to discuss economic outlooks and monetary policies, with key economic data expected to drive volatility in financial markets. Global investors are looking for signs of cooling inflation, lower interest rates, and economic recovery. The two-day Jackson Hole Symposium, attended by central bankers and financial leaders, will be a focal point, along with the release of flash manufacturing and services PMI data from major economies like the Eurozone, the UK, and the US.
In the Eurozone, the final CPI for July is expected to remain at 2.6%, possibly impacting the likelihood of the ECB implementing a second rate cut in September. Germany and France will release their flash manufacturing and services PMIs, with positive signs of economic recovery seen in recent months. However, manufacturing activities are expected to remain in contraction across the Eurozone.
In the US, the Fed’s meeting minutes and the Jackson Hole Symposium are key events for the markets. The Fed held interest rates steady last month but may deliver more cuts amid weakening job markets and cooled inflation. Fed Chair Jerome Powell is likely to set the tone for a September rate cut at the Symposium. The US will also release its flash manufacturing and services PMIs, with manufacturing activities expected to remain in contraction.
The PBOC in China will decide on loan prime rates, while the RBA in Australia will release its meeting minutes. Manufacturing and services PMIs from Japan and Australia are expected to show continued contraction. Japan’s CPI is anticipated to rise to 2.7%. Overall, global markets are watching closely for indications of economic health and future monetary policy actions.
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