Thomas Watts, Investment Analyst, abrdn, comments on the economic data releases this week;
“After a busy few weeks of economic data releases, the coming week has something of a quieter feeling about it as we head into the long weekend.
“The foundations for the next few days come in the form of online estate agent, Rightmove’s, Housing Price Index. With house price growth having slowed to 1.7% according to last week’s data, and values in London having actually fallen on an annual basis, the complementary reading will allow us to further gauge the state of the domestic housing market, especially as rates look set to rise further.
“From home addresses to central bank addresses, Tuesday sees a host of US Federal Reserve officials give press conferences, talking about their views on the economy and dropping hints towards future rate policy. We will hear from both Michelle Bowman and Austan Goolsbee during a “Fed Listens” event hosted by the Federal Reserve Bank of Chicago. With a flurry of stronger than expected data emanating from the US in recent weeks, their words should take on added significance as investors mull the dwindling chances of a rate cut before the end of the year.
“The middle of the week will bring a host of Flash Purchasing Manager Index (PMI) data, detailing the results of a survey asking businesses to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries and inventories. Covering both the manufacturing and services sectors for Germany, France, an overall European composite, the UK and US, the readings will give us an invaluable sense of the global economy at a company level.
“The end of the week brings us a trip to Wyoming, in particular Jackson Hole, for the annual Economic Policy Symposium the town hosts. The summit will be attended by central bankers, finance ministers, academics, and financial market participants from around the world. The meetings are closed to the press but officials usually talk with reporters throughout the day. Comments and speeches from central bankers and other influential officials can create significant market volatility and will certainly be watched closely for any hints that the central banks hiking cycle we have seen is coming to an end.”
