Financial Market Preview for September 7-11

The recent non-farm payroll – showing a gain of only 173K jobs in August — wasn’t too impressive at first glance, but a closer look shows the report wasn’t too bad — with upward revisions of previous months, modest gain in wages, and fall in rate of unemployment. This week, the NFP is still likely to echo in the financial markets along with the ongoing concerns over China. The main reports that will be released this week include: U.S. JOLTS, Japan’s GDP for Q2, BOC and BOE rate decisions, U.S. PPI, GB’s manufacturing sales, U.S. consumer sentiment, China’s trade balance, and IEA report. So let’s review the economic calendar for the week of September 7th to 11th:  

(All times GMT):

Monday, September 7th

00:50 – Japan’s Current Account: This report will present the shifts in the difference between imported and exported goods, services, and income flows. In the last monthly report, the surplus in the current account contracted to 1.30 trillion yen;

00:50 – Japan’s GDP for Q2: This will be the final estimate for Japan’s GDP growth rate in the second quarter. The current expectations are it will show a contraction of 0.4%. This comes after the economy grew by 1% in Q1 2015;

Tuesday, September 8th

Tentative – China’s Trade Balance: China’s trade balance surplus has contracted last month but is expected to rise again in the upcoming report; this update provides another indication for the economic activity in the world’s second largest economy;

15:00 – Bank of Canada’s Overnight Rate and Press Conference: Back in July Bank of Canada cut its overnight rate to 0.50%. The BOC isn’t expected to make any changes to its policy, but the ongoing weakness in Canada’s economy – mostly driven by low commodities prices – could lead the BOC to consider slashing rates again;

Wednesday, September 9th

09:30 – Great Britain Manufacturing Production: This report will present the annual rate of GB’s manufacturing production for July; in the last report regarding June 2015 the index rose by 0.2%; this time, the estimates are for another 0.2% gain;

15:00 – U.S JOLTS Job Openings: The Bureau of Labor Statistics will publish its monthly report on the U.S number of job openings for July, excluding the farming industry; in the previous update for June, the number of jobs opening dropped again to 5.25 million; current market predictions are for the number to bounce back to 5.30 million;

15:30 – U.S Crude Oil Stockpiles Weekly update: The EIA (Energy Information Administration) will release its weekly report on the U.S oil and petroleum stockpiles for the week ending on September 4th;

Thursday, September 10th

02:30 – Australia Employment Update: In the recent report for July the rate of unemployment rose to 6.3%; the number of employed (seasonally adjusted) also increased by 38.5K people. The weakness in China is starting to affect the Australian labor market (see here the recent report);

02:30 – China’s CPI: According to the previous report, the CPI edged up to an annual rate of 1.6%; if the annual rate rises, it could signal the Chinese economy is slowly heating up again; the current expectations are for the CPI to inch up to 1.9%; in the meantime, the PPI remains negative at 5.4% — and this month the PPI is expected to fall again to -5.6%;

12:00 – BOE Rate Decision & Asset Purchase Plan: This event isn’t likely to make waves in the markets considering Bank of England isn’t expected to change its policy at this point;

13:30 – U.S. Jobless Claims Weekly Report:  This weekly report will pertain to the shifts in the initial jobless claims for the week ending on September 4th; in the previous report, jobless claims slightly increased to 282K; the expectations are  for this number to slightly decreased to 279K;

15:30 – EIA U.S. Natural Gas Storage: The EIA weekly report of the U.S. natural gas market will refer to the latest changes in natural gas production, storage, consumption and rates as of September 4th;

Friday, September 11th

Tentative –IEA Monthly Oil Update: This report will show an updated (as of August) forecast and analysis for the global crude oil and natural gas market for 2015 and 2016;

13:30 – U.S. Producer Price Index: This report shows the inflation rate from the producers’ side; it will refer to August 2015. In last month’s report regarding July, this index for finished goods rose by 0.2% m-o-m; the core PPI increased again by 0.3%; current estimates are for the PPI to present a fall of 0.1%;

14:55 – UoM Consumer Sentiment (preliminary): University of Michigan will publish its preliminary consumer sentiment monthly update; this survey could offer information vis-à-vis the latest developments in U.S consumers’ sentiment; According to the last report, the sentiment index declined to 92.9;

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