The infoshot to help kick-start your week
Last Week
- After a turbulent week, markets are showing signs of stabilisation. Asian stocks rose for a second consecutive session, and European equity futures are also trading in positive territory. Investors are now turning their attention to key U.S. economic data, with Wednesday’s Consumer Price Index (CPI) report in focus. Inflation is expected to have edged higher in July, but likely not enough to deter the Federal Reserve from a widely anticipated interest rate cut next month. However, Federal Reserve Governor Michelle Bowman cautioned that inflation risks remain and the labour market continues to show strength, suggesting she may be hesitant to support a rate cut in September.
- This week, the UK takes the spotlight in Europe with a series of important economic reports on the horizon. On Tuesday, data is expected to reveal a slowdown in wage growth, one of the most closely watched indicators. Wednesday will bring inflation figures, with particular attention on the services sector, where price growth may remain stubbornly above 5%. Thursday’s monthly GDP report is anticipated to show minimal growth for June, though second-quarter output could still reflect a 0.6% expansion. Finally, retail sales data on Friday is likely to indicate a rebound in July following a decline in the previous month.
The Paris Olympics has come to an end, and the Bank of France predicts that the event will likely boost French economic growth in the third quarter. GDP in the euro area’s second-largest economy is expected to rise by 0.35% to 0.45%, an improvement from the 0.3% growth recorded in the previous two quarters. This uptick is attributed to revenue from ticket sales and TV rights for the Games, though the full impact on economic activity is still being assessed. Interestingly, the value of Olympic gold medals has surged, with the raw materials in each medal potentially worth around $900.
Market Pulse
Coming Up
- UK Average Earnings Index, Tuesday 13th August 2024 at 7:00am
- UK CPI Data, Wednesday 14th August 2024 at 7:00am.
- US CPI Data, Wednesday 14th August 2024 at 1:30pm.
- UK GDP Data, Thursday 15th August 2024 at 7:00am.
- US Initial Jobless Claims (Aug), Thursday 15th August 2024 at 1:30pm
Notice:
For professional advisers only, Copia does not provide financial advice, and the contents of this document should not be taken as such. The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.Open document settingsOpen publish panel
