Weekly Economic Preview: Markets prepare for inflation, growth and rate signals

Global markets are heading into a pivotal week, with inflation, growth and central-bank policy dominating the economic agenda. From the Fed and ECB to China and Japan, a wave of key data will shape expectations for interest rates and economic momentum. Meanwhile, the ongoing Iran-US tensions could add further volatility to energy prices and global markets.

Us: The US faces a busy week, with markets closely watching the Federal Reserve minutes after its latest meeting featured three hawkish dissenting votes. Flash S&P Global PMIs will provide fresh clues on manufacturing and services activity. Industrial production is expected to increase 0.3%, while building permits and housing starts will offer insight into the housing market. Import and export prices, regional manufacturing surveys and Treasury capital flows will also be monitored. Canada will release inflation and retail sales data.?

Europe: Europe?s focus will centre on the ECB?s latest meeting accounts following its decision to leave interest rates unchanged in July. Flash manufacturing and services PMIs from the Eurozone, Germany, France and Italy will offer an update on regional economic momentum. Germany?s ZEW Economic Sentiment Index will also be released after reaching a five-month high in July. The UK will publish inflation, employment and retail sales figures alongside flash PMI data. UK inflation is expected to accelerate to 2.9%. ?Sweden?s Riksbank will also announce its latest interest-rate decision amid shifting expectations for monetary policy.

Asia-Pacific: China will dominate the regional calendar with industrial production, retail sales, property prices, fixed-asset investment and unemployment data. The People?s Bank of China is widely expected to keep its one-year and five-year loan prime rates unchanged at 3% and 3.5%. Japan will release preliminary Q2 GDP, trade, inflation, machinery orders and flash PMI data, with GDP growth expected at 0.5% QoQ. India will publish July unemployment figures and August flash PMI data, offering fresh signals on domestic economic activity. Australia will release employment data alongside consumer confidence and inflation expectations. Elsewhere, Singapore and Malaysia will report trade data, while Thailand will publish Q2 GDP and Indonesia?s central bank is widely expected to keep its policy rate at 5.75%.

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