(August 25 17:30 ET) – With this past week’s rate announcement, the Fed likely will not move reates again until November. Next week looks like a quiet spell with markets only mildly interested in economic announcements.
On Monday the U.S. releases personal income and expenditure data. U.K. markets will be closed for a holiday. Tuesday will bring new home sales in the U.S., and Canada sees the Industrial Product Price Index. Wednesday is quiet. Thursday will bring the Chicago Purchasing Managers Index and the big news of the week in Canada — second quarter GDP data. CIBC World Markets expects to see a deceleration to 4%, BMO Nesbitt Burns is calling for GDP to slide to 3.7%.
An interest rate announcement is also expected from the European Central Bank. CIBC expects the ECB to tighten by 25 basis points.
Friday is the big data day for the U.S. with both employment data and the National Association of Purchasing Managers Index report. CIBC is calling for 180,000 new jobs in the U.S., pushing labour markets even tighter. BMO Nesbitt expects a slightly more sanguine report confirming an economic slowing.
First Call says next week is a “dead time for earnings reports and for meetings with the financial community”. Although it notes that many retailers will report same store sales on Thursday and the auto makers will report on Friday. National Fibre Optics Engineers holds a four-day conference next week, featuring Nortel on Monday, along with rivals Cisco and Lucent. CIBC World Markets holds a fibre optic conference on Wednesday, featuring JDS Uniphase.
The Bank of Nova Scotia is due to report earnings on Tuesday and National Bank is slated for Thursday.
-IE Staff