North Korea

 

The ongoing tensions on the Korean peninsula are likely to set the tone for financial markets throughout the week. Markets remained jittery all last week, with equities and other risk assets enduring bouts of selling after a fresh nuclear test and threats of the US receiving more “gift packages” from the Pyongyang regime.

Bank of England

 

The Bank of England will meet to decide interest rates this week, with the announcement due at the usual time of midday on Thursday. Expectations that the Monetary Policy Committee is moving closer to raising rates has been tempered by a slight slowdown in inflation and concerns that growth is precarious. Policymakers are expected to leave the Bank Rate unchanged at 0.25% and make no adjustments to the size of the asset purchase programme.

The pound has been sensitive to rate hike speculation but with MPs sitting and scrutinising Brexit talks again, politics could be the chief driver of sterling crosses over the coming weeks. Nevertheless, markets will be keen to see what, if anything, the Bank has say about the path of growth and inflation.

UK inflation

 

With the Bank announcement on Thursday, the CPI inflation report on Tuesday will be closely monitored for any signs of mounting pressures on prices. After peaking in May at 2.9%, CPI inflation has since eased back to 2.6% in June and July. 

US inflation

 

US CPI inflation data for August is due on Thursday, with the numbers eyed as the last piece of the puzzle ahead of the Federal Reserve meeting the following week. Persistently sluggish inflation has dampened expectations for a third rate hike this year. The headline CPI reading eased up by just 0.1% in July, missing expectations for a 0.2% rise. Core PCE inflation, the Fed’s preferred measure, slid back to 1.4% in July from 1.5% in June, extending a run of slowing price growth that has persisted for most of the year.

Economic Calendar

(All times BST)

Monday, 11 September

00:50 – Japan core machinery orders

07:00 – Japan preliminary tool orders

09:00 – Italy industrial production, quarterly unemployment rate

13:15 – Canada housing starts

Tuesday, 12 September

02:30 – Australia NAB business confidence

09:30 – UK CPI, PPI inflation

15:00 – US JOLTS job openings

Wednesday, 13 September

00:50 – Japan PPI inflation

01:30 – Australia Westpac Consumer Sentiment

07:00 – Germany final CPI inflation

08:15 – Switzerland PPI inflation

09:30 – UK average earnings, unemployment rate

10:00 – Eurozone employment change, industrial production

13:30 – US PPI and core PPI inflation

15:30 – US crude oil inventories

Thursday, 14 September

00:01 – UK RICS house price balance

02:30 – Australia employment change, unemployment rate

03:00 – China industrial production, fixed asset investment

07:45 – France final CPI inflation

08:30 – Swiss National Bank Libor rate, monetary policy assessment

09:30 – UK retail sales

12:00 – Bank of England monetary policy summary, official bank rate

13:30 – Canada new housing price index

13:30 – US CPI, core CPI and weekly unemployment claims

23:30 – New Zealand Business NZ manufacturing index

Friday, 15 September

10:00 – Eurozone trade balance

12:00 – Bank of England quarterly bulletin

13:30 – US retail sales, core retail sales, Empire State manufacturing index

14:15 – US capacity utilisation rate, industrial production

15:00 – US preliminary University of Michigan consumer sentiment

Corporate Calendar

 

Monday, 11 September

Associated British Foods (ABF) – trading update

Tuesday, 12 September

Ashtead Group (AHT) – Q1 results

JD Sports (JD.) – Interim results

Wednesday, 13 September

Dunelm Group (DNLM) – final results

Galliford Try (GFRD) – final results

Thursday, 14 September

Oracle Corp (ORCL) – Q1/2018, EPS estimate 0.605

GVC Holdings (GVC) – interim results

Morrison (Wm) Supermarkets (MRW) – interim results

Next (NXT) – interim results

Booker Group (BOK) – Trading update

Safestore Holdings (SAFE) – Trading update

Friday, 15 September

Wetherspoon J.D. (JDW) – final results

Source: Bloomberg

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