• Home ::
• Fundamental ::
• Market View ::
• Currency and Stock Markets Weekly Outlook

• Send
• Print
• Add To
• Rss

Currency and Stock Markets Weekly Outlook

3bd1a24f-c88a-43b5-a46a-454a98ce36b0

0

0

Economic outlook

Mon, May 19 2008, 10:46 GMT
by Adam Narczewski

X-Trade Brokers, XTB

Last week’s inflation reports moved currency and stock markets. The upcoming week should be as interesting as the previous one.

The situation on financial markets seems to be stabilizing, which is really a good sign. There are couple of macroeconomic reports being published this week that can provide more insight into the global economic situation.

On Tuesday, we will get the Producer’s Price Index (PPI) from the U.S. In Europe, Germany will publish its ZEW Economic Sentiment index. Polish investors will be following the Swiss PPI report. Why? Higher than expected PPI is a signal of increasing CPI inflation, which is bad news for Polish credit holders. More and more debt is denominated in Swiss francs so the possibility of an interest rate hike in Switzerland (higher inflation can cause such move) will be more probable.

On Wednesday, we will get to know the German Ifo Business Climate Index. In the spotlight will be the Bank of England’s and Fed’s minutes from their last meetings. Investors betting on the Canadian dollar should pay attention to the Canadian CPI report. Recently, the CAD is on the rise already dropping below the 1.0 level against the American dollar.

Thursday will bring more news from the Canadian economy with the retail sales report. The same report will be published by the UK. The American labor market is in a small crisis recently so investors should pay attention to the weekly unemployment claims report.

The last day of the week will bring us a series of European PMI publication. Most important will be the second estimate of UK’s GDP and the always important publication from the U.S housing market – Existing Home Sales.

The upcoming week will be rich in macroeconomic publications from the Polish economy. On Monday we will get to know the Average Wages and Average Employment. Wages are expected to grow by 11.5% on a yearly basis from the previous 10.2%. That would be another sign that inflationary pressures in Poland are still strong. On Wednesday, the PPI and Industrial Production reports will be published, both being important to the Polish currency

Published on  Mon, May 19 2008, 10:46 GMT