In the week ahead investors will be focusing on Wednesday’s Federal Reserve minutes, as well as testimony on the economic outlook and monetary policy by Fed Chairman Ben Bernanke. Markets will also be watching the outcome of Wednesday’s Bank of Japan policy meeting and euro zone data on manufacturing and service sector activity.
Monday, May 20
The UK is to release private sector data on house price inflation. Markets in Canada are to remain closed for the Victoria Day holiday.
Tuesday, May 21
The Reserve Bank of Australia is to release the minutes of its most recent policy setting meeting, which contain important insights into economic conditions from the bank’s perspective. Australia is also to publish an index of leading economic indicators, while New Zealand is to produce official data on inflation expectations.
Germany is to release official data on producer price inflation, a leading indicator of consumer inflation. The UK is to produce government data on consumer price inflation, which accounts for the majority of overall inflation, as well as data on producer and retail price inflation.
Wednesday, May 22
Australia is to release private sector data on consumer sentiment, a leading economic indicator. Japan is to release official data on the trade balance, the difference in value between imports and exports. The BoJ is to announce its benchmark interest rate. The announcement is to be accompanied by the bank’s monetary policy statement, which contains important insights into the economic outlook. The BoJ is to hold a press conference after the rate announcement. The euro zone is to release data on the current account, while Italy and Germany are to hold government bond auctions. European Union leaders are to hold an economic summit in Brussels. The Bank of England is to publish the minutes of its most recent policy setting meeting, which contain important insights into economic conditions from the banks perspective. The UK is to release official data on public sector net borrowing, as well as a report on industrial order expectations. The Chairman of the Swiss National Bank Thomas Jordan is to speak; his comments will be closely watched. Canada is to produce official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The US is to release data on existing home sales, a leading indicator of economic health, while the Fed is to publish the minutes of its most recent policy-setting meeting. Fed Chairman Ben Bernanke is to testify on the economy and monetary policy in Washington.
Thursday, May 23
China is to release the preliminary reading of its HSBC manufacturing index, a leading economic indicator. The euro zone is to release preliminary data on manufacturing and service sector activity. Germany and France are to produce individual reports. Meanwhile, Spain is to hold an auction of 10-year government bonds. Later Thursday, European Central Bank President Mario Draghi is to speak; his comments will be closely watched. The UK is to publish official data on retail sales, as well as revised data on first quarter economic growth and a report on business investment. The US is to release the weekly government report on initial jobless claims and official data on new home sales, a leading indicator of economic health.
Friday, May 24
New Zealand is to publish official data on the trade balance. The Ifo Institute is to release a closely watched report on German business climate, a leading economic indicator. Germany is also to release revised data on first quarter economic growth and the Gfk index of consumer climate. The UK is to release industry data on mortgage approvals, an important indicator of demand in the housing market. The US is to round up the week with government data on durable goods orders, a leading indicator of production.