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All eyes on Thursday’s ECB monetary policy announcement

Chris Scicluna
Emily Nicol
  • UK politics in focus as opportunistic Foreign Secretary Liz Truss expected to be announced as Johnson’s successor Prime Minister
  • Today’s Japanese final services PMI for August were consistent with contraction 

 

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German GDP up slightly in Q2

Chris Scicluna
Emily Nicol
  • French business confidence holds steady in August, but still remains well below levels in the first half of the year
  • ECB account from July’s policy meeting to be watched closely for further insights into the likely near-term policy path 
  • Japan’s services producer price inflation unchanged at 2½-year high

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Japanese flash PMIs slip into contractionary territory

Chris Scicluna
Emily Nicol
  • Underlying price pressures continue to broaden in Japan, with the trimmed mean CPI rising to the highest since the series began in 2001
  • Europe’s flash PMIs seem likely to signal increasing recession risks, while the Commission’s flash consumer confidence is likely to remain close to or at record low

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ECB meeting account to provide further insights into debate on rates

Chris Scicluna
Emily Nicol
  • Powell’s Jackson Hole speech to give opportunity for an updated Fed policy signal 
  • Flash PMIs (tomorrow) likely to flag rising recession risks in the euro area and UK as concerns about high energy prices and other cost pressures take their toll; Japanese indices likely to remain subdued

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UK CPI inflation hits double-digits in July

Chris Scicluna
Emily Nicol
  • Japan’s nominal trade deficit hit a series high in July as higher prices of fuel and other imported items continued to dominate; Reuters Tankan survey points to modest improvement in Japanese business sentiment in August
  • Updated euro area GDP figures this morning likely to confirm the flash estimate of growth of 0.7%Q/Q in Q2, while employment is set to rise for the fifth consecutive quarter
  • Focus in the US will be on July retail sales figures ahead of the release of the Fed’s minutes from the end-July policy meeting

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