Inflation in the U.S.A. remains the focus of investor interest this week. The release of the CPI on Tuesday will show how the consumer price index has developed. Due to the imbalance between supply and demand, prices for some goods have continued to rise. Although the price increase has slowed recently, it remains at a 13-year high on an yearly basis,
At the same time, investors are waiting for retail sales data, Thursday’s industrial production report and Friday’s University of Michigan consumer sentiment report.
The U.S. inflation figures could determine when the central bank will scale back its stimulus measures. This is the main driver of market sentiment in the face of rising inflation concerns.
Despite the reduction in stimulus measures, the central bank (Fed) is expected to keep interest rates low. This has a positive effect on the stock market, although the returns are uncertain, investments in the stock market are well worth considering.
This week, the U.K. central bank will keep an eye on inflation. Employment and retail sales amid slowing economic recovery. Inflation data fell to 2% in July and retail sales fell 2.5% month-on-month.
In addition, much attention will be paid to the BoE meeting scheduled for September 23. Given the labor shortage and a wage increase of 8.8% in June – a record increase. Even if people are forced onto the labor market, this does not necessarily mean a price relaxation, as there is also a lack of skills.
On Wednesday, data on industrial production, retail sales and fixed asset investment will be published from China. Particular attention will be paid to these this week. They will show whether the recovery of the world’s second largest economy is slowing down or not. In light of the severe outbreak of the Covid 19 virus in August, the world’s third largest container port in Beijing had to be closed to contain the spread of the virus.
Despite the impact of the COVID-19 virus, China’s exports remain strong. However, domestic performance is a cause for concern. Lower domestic demand in the face of strict measures to control supply and prices of real estate, including a campaign to reduce carbon dioxide emissions, are currently depressing sentiment.
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Monday, September 13, 2021