5 world market themes for the week ahead
investors are on edge ahead of more key macro events that could shape the tone for trading in the weeks ahead.
Here's your look at the week ahead for markets from Kevin Buckland in Tokyo, Ira Iosebashvili in New York, Yoruk Bahceli in Amsterdam and Naomi Rovnick and Amanda Cooper in London.
1. PRICE IS RIGHT?
Investors' focus may have shifted to U.S. employment and economic growth, but the upcoming consumer price data — due on Sept. 11 — could still cause a stir.
The markets are still gaming out how much the Federal Reserve will need to cut rates at its Sept. 17-18 meeting, heightening the importance of every data report.
Evidence that inflation remains relatively robust could argue against a 50-basis point rate cut — currently seen as a less likely scenario than the Fed reducing rates by just 25 basis points. A sharp drop in consumer prices, on the other hand, could be interpreted as a sign economic growth has begun to slow more than expected, tipping the scales towards a jumbo cut.
Economists polled by Reuters expect inflation to have risen by 0.2% in August, matching the rise the previous month.
2. ECB'S NEXT MOVE
The European Central Bank is all but certain to deliver its second rate cut this cycle, so what matters more is any clues on what's next.
Traders now fully price another cut after September and close to a 50% chance of an additional move this year.
In mid-July, they saw less than a full chance of a post-September cut.
With a December move seen as likely, investors are eager to hear whether
