The week ahead: 22-26 September

A look ahead to the major events, economic releases and company news expected next week.

City of London
Source: Bloomberg

The biggest event in the UK’s recent history is behind us and Scotland has voted ‘No’. The relief is palpable, both among politicians and financial markets, and now we can focus on the economic fundamentals of the UK.

The week ahead sees a healthy slice of economic data for traders to digest, with particular highlights being the PMIs from around the world and then the durable goods report on Thursday, which will show a sharp drop from a July number that had been inflated by airline orders for new jets. 
 

Economic reports

Monday

Chicago Federal Reserve index (Aug), 1.30pm: Having hit 0.39 last month, the reading is expected to fall to 0.26. Market to watch: US indices, dollar crosses

Existing home sales (August), 3pm: The annualised rate is forecast to drop to 4.7 million, from 5.15 million last month. Market to watch: US indices, dollar crosses

Tuesday

HSBC China manufacturing PMI (September), 2.45am: The previous reading just hung on in expansion territory at 50.2. Market to watch: China A50, Hang Seng, AUD/USD, Copper

French GDP (Q2, final), 7.45am: No change is expected to the previous reading, at MoM growth of 0% and YoY growth of 0.1%. Market to watch: CAC 40, EUR/USD, EUR/GBP

French, German, eurozone services, manufacturing PMIs (September preliminary), 8-9am: These readings will be crucial to gauge whether the eurozone economies are seeing any growth, and are broadly expected to register a small expansion. Market to watch: EStoxx 50, CAC 40, DAX, EUR/USD, EUR/GBP

US manufacturing PMI (September, preliminary), 2.45pm: From an August reading of 57.9, the September reading is expected to fall back to 54.29. Market to watch: US indices, dollar crosses

Richmond Fed manufacturing index (September), 3pm: The August figure for this indicator was 12, with any increase boosting confidence in the US economic recovery. Market to watch: US indices, dollar crosses

Wednesday

German IFO (September), 9am: This closely watched indicator aids investors in determining the current outlook for the German economy. The business climate indicator is expected to rise from August’s 106.3 to 107.5. Market to watch: DAX, EUR/USD, EUR/GBP

US new home sales (August), 3pm: This figure is expected to accelerate to an annual rate of 439.9K, from July’s 412K. Market to watch: US indices, dollar crosses

Energy Information Administration crude oil inventories, 3.30pm: The weekly data release helps to gauge whether US crude demand is rising or falling. Market to watch: US light crude

Thursday

US initial jobless claims, durable goods orders (August), 1.30pm: Jobless claims are expected to rise to 302K from 280K this week, while durable goods orders are expected to drop by 0.24%, after a strong July rise of 22.6% skewed by aircraft orders. Market to watch: US indices, dollar crosses

US services PMI (September, preliminary), 2.45pm: After hitting 59.5 in August, the September reading is expected to decline to 55.74. Market to watch: US indices, dollar crosses

Friday

Japanese CPI (August), 12.30am: From 3.4% a month ago, the inflation rate is expected to edge back to 3.29%. Market to watch: Nikkei 225, USD/JPY

US GDP (Q2, third reading), 1.30pm: US economic growth is expected to remain unchanged at 4.2% for the quarter. Market to watch: all major indices, currency pairs

Michigan confidence index (September, final), 2.55pm: The final reading for the month is not expected to change from the 84.6 of the second reading. Market to watch: US indices, dollar crosses

 

Company announcements

Monday

Dairy Crest, Gemfields, Panmure Gordon

Tuesday

Close Brothers, PZ Cussons, Carnival, AG Barr, Bed Bath & Beyond

Wednesday

United Utilities

Thursday

NIKE, Micron Technology, WANdisco

Friday

Blackberry


 

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