The last week was so eventful for traders: FOMC Meeting, Bank of England’s rate decision, the OPEC+ meeting, and also NFP. This week is going to be interesting as well! Let’s see what you should focus on.
German economy dodges recession
In the final quarter of 2018, the German economy stalled, narrowly dodging recession because the fallout from global trade clashes and Brexit threatened to heavily impact a decade-long expansion in the EU’s number one economy.
GDP in Europe's leading economy was intact for the quarter, as the Federal Statistics Office informed on Thursday. By the way, a Reuters survey had foreseen a 0.1% leap.
German businesses are grappling with a decelerating global economy as well as trade clashes triggered by American leader. Moreover, there’s a high probability that the United Kingdom will abandon the European bloc in March on the terms of its withdrawal without an agreement.
With surge intact in the fourth quarter, the German economy dodged recession in the form of two or more consecutive quarters of contraction having dived by 0.2% in the third quarter.
The German economy rallied at its weakest tempo for five years last year. Surge is anticipated to dive further to 1% in 2019, and Germany experiences a budget shortfall of nearly 25 billion euros by 2023.
The fallout from the trade disputes as well as fears about Brexit are putting pressure on business confidence that keep slipping for the fifth month in a row.
Morale is also being suppressed by weaker demand for German services and goods in the euro zone, China as well as emerging markets.
Moreover, the German cabinet is concerned that technological innovation along with the acquisition of German industrial know-how by foreign, especially Chinese businesses could affect the manufacturing base on which much of Germany's prosperity is based.
The previous week, Peter Altmaier, the country’s Economy Minister told that the cabinet might take stakes in major domestic companies to avert foreign takeovers. From his point of view, such a move is required to safeguard the country’s prosperity.
Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
The Kansas City Federal Reserve announced Friday the annual Jackson Hole symposium will be held virtually, a reversal from prior plans that saw a modified, in-person program…
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.