This week: Policymakers meet in Jackson Hole

Market Focus this week

The markets are in for a pivotal week as economic events take center stage from August 21-25, 2023. Last week's focus was on inflation data and central bank decisions worldwide, but this week promises an influx of economic data.

Kicking off on Monday, the People's Bank of China will announce the initial interest rate for general term loans. Expectations point towards a reduction from 3.55% to 3.40%. Following this, the German Producer Price Index (PPI) reading for July will be unveiled, indicating a contraction of 0.4%.

Wednesday will bring forth a series of events, with S&P Global scheduled to release Services and Manufacturing Purchasing Managers' Index (PMI) readings for France, Germany, and the entire Eurozone. Forecasts anticipate a slowdown in the services sector activity, while the manufacturing sector is expected to remain below 50. Subsequently, PMI data from the UK and US will be disclosed. Canada will release the Retail Price Index and the Core Retail Price Index monthly. Simultaneously, the BRICS summit will convene, bringing together heads of state from Brazil, Russia, India, China, and South Africa. The summit aims to facilitate discussions on trade among BRICS nations and the development of infrastructure.

The focal point of the week will be the eagerly awaited Jackson Hole Economic Symposium, scheduled for Thursday and Friday in the US state of Wyoming. This symposium gathers central bank governors and finance ministers from around the world, providing insights into the potential future directions of central banks. Market participants will be closely monitoring this event to gain clarity on the global economic outlook.