FinanceDraft

Week Ahead: How The World Economy Is Faring?

Investors have had a tough time this year as the global markets have been volatile due to challenges in the world economy which includes the slowdown in China, trade tussle of US with China and Europe, Brexit, etc. The coming few weeks will bring more clarity on at least some of the economic situations if not all. Let us look at how the economies around the world will be affected this week after the cut in forecasts for global economic growth by the Organization for Economic Cooperation.

US and Canada:

  • Canada central bank deputy chief speaks about the health of the Canadian economy on Thursday.
  • Trade Representative Robert Lighthizer to testify on Tuesday on trade news between China.
  • Data on retail sales to be published this week.
  • Sales in retail likely to rebound while consumer growth is likely to remain at 1.6%.

Asia:

Report of Chinese Retail sales to be announced on Thursday and is expected to be around 8% noting a fall from the previous year sale of 9%. Industrial production is also expected to be reduced when compared to last year.

Governor Haruhiko, chief of Bank of Japan will address a gathering after deciding on its monetary policy. However, not many changes are expected.

The National People’s Congress will release the industrial production, credit, sales and investment data which will reveal to the investors how the world’s second-largest economy is performing after the stimulus Beijing has provided.

Europe:

As per economists, industrial production is set to fall by 0.9%, with a growth rate of 0.5%. Tuesday is an important day for England as UK Prime Minister Theresa May’s Brexit deal will get voted after which the budget session will commence with Chancellor Philip Hammond delivering the budget. After the stimulus announced by the ECB, it is time to see how Germany and the Euro region have done this quarter as they announce industrial production data for the first quarter which is an indication of the current health of the economy in that region.

Americas:

This week is an important week for the Americas too as most of the countries are going to release data regarding inflation. On Wednesday, industrial production data will be released after the current President assumed power. Argentina’s inflation figures for this month will be published on Thursday. Brazil’s new Reserve Bank Chief will start office on Wednesday. The IMF is all set to announce a multi-billion dollar loan to cash-strapped Ecuador.

Leave a Reply