Exciting week ahead: market anticipation for key economic indicators

Top economic events this week

By Laila Eid | @Laila Eid | 27 August 2023

Week 2 _ 27 Aug
  • Markets await the Fed's preferred inflation reading

  • Chinese PMI reading scheduled for Thursday

  • Forecasts show a 169K job addition to the US economy in August

Top news this week

This week, the financial markets are eagerly awaiting significant economic indicators that hold the potential to shape market trends and investor sentiment.

The spotlight turns to the Federal Reserve's preferred inflation reading, which holds considerable sway over market movements. Additionally, the eagerly anticipated Chinese PMI reading is slated for release on Thursday. This will provide crucial insights into the manufacturing and non-manufacturing sectors, offering a glimpse into the health of the world's second-largest economy.

Key highlights of the week

The week kicks off on Tuesday with a keen eye on the US consumer confidence index. Projections suggest a modest decline from 117 to 116.2, reflecting shifting consumer sentiments. Following this, JOLTS Job Openings reading.

Wednesday brings the Australian CPI reading on a yearly basis. Expectations are for a decline in inflation from 5.4% to 5.2% in August. Spain's inflation index is also poised for release on the same day. Furthermore, the non-farm payrolls report for August will provide insight into the private sector job landscape. Expectations of adding 201K jobs highlight a more subdued trend compared to recent months. On this day, the US GDP figures will also be unveiled, offering a comprehensive view of the nation's economic performance.

Thursday is set to be a pivotal day for markets, featuring the release of China's PMI for both the manufacturing and non-manufacturing sectors. This data holds implications beyond national borders, impacting global supply chains and demand dynamics. Simultaneously, the Federal Reserve's favored inflation indicator reading is scheduled to be unveiled. An expected uptick from 4.1% to 4.2% marks a notable shift after a series of declines since October 2022, when it stood at 5.1%.

As the week draws to a close, Friday brings heightened anticipation for the US jobs report from the Bureau of Labor Statistics. This report will provide comprehensive insights into the employment landscape, shedding light on job creation and unemployment rates. Additionally, attention will extend to the Canadian GDP figures, offering valuable insights into the economic health of Canada.