Top 5 things to watch in markets in the week ahead
Investing.com — All eyes will be on the U.S. in the coming week as inflation data is released. GDP data out of the U.K. will show how the economy is holding up in the face of continued rate hikes. Data out of China could point to deflation risks in the world’s number two economy. Here’s what you need to know to start your week.
The U.S. is to release July inflation data on Thursday which will show whether price pressures are trending down and if markets are correct in believing that the Fed is close to ending its aggressive cycle of interest rate hikes.
Lower numbers would make it more likely that Fed policymakers will hold off raising interest rates at their upcoming September meeting after a quarter-percentage-point hike last month.
On Friday, the U.S. is to release July PPI data, with core producer prices expected to rise by 2.3% from a year earlier.
Investors will also get to hear from several Fed officials during the coming week with Philadelphia Fed President Patrick Harker, Atlanta Fed President Raphael Bostic and Fed Governor Michelle Bowman making appearances.
Wall Street closed broadly lower on Friday and weekly percentage declines for the S&P and Nasdaq were the biggest since March as some investors locked in profits after five months of gains.
The near-term trajectory for equities could depend on whether Thursday’s inflation data shows consumer prices moderating. Investors are also closely watching the path of Treasury yields, which rattled markets in recent days by rising to fresh year highs following a downgrade of the U.S. credit rating by Fitch.
Rising yields on Treasuries, viewed as among the world's safest investments because they are backed by the U.S. government, can dampen demand for stocks.
Friday’s
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