In July, factory surge speeded down around the globe, raising worries as for the global economic outlook because an escalating trade war between China and the USA affected the global economy.
Global economic activity is still firm, although it has already passed its maximum, according to market experts surveyed by Reuters in July. They actually expect protectionist policies on trade that don’t demonstrate any indications of relief to tap the brakes.
However, decelerating surge, diving confidence as well as trade war worries won’t probably deter key financial institutions from giving up their ultra-loose monetary policies activated during the last financial downtime.
Surge is still resilient. Wages and inflation go up, while unemployment rates happen to be low. All of this gives major banks grounds to proceed with tightening, as some financial analysts pointed out.
The previous month, the United States and China slapped tit-for-tat duties on $34 billion of each other's products and another round of duties on $16 billion is anticipated to kick in August.
According to some sources, the current US presidential administration is braced for slapping 25% duties on a further $200 billion of imports, in contrast with an initial proposal of 10%. Trump’s threat of tariffs on the entire $500 billion worth of Chinese products is still actual.
The Chinese government has promised equal retaliation. However, this Asian country imports approximately $130 billion of American products.
On Wednesday, world equities headed south and the evergreen buck rallied on worries of an approaching escalation in the US-China trade conflict.
In America, surge is anticipated to speed down a bit, although remain firm enough for the Fed to remain on track for two rate lifts in 2018.
European factory surge was still sluggish in July, while Asian manufacturers demonstrated a loss of momentum.
ECB is ready to take the decision about the key rate. What to expect from officials? Oil prices are high, and economy indicators demonstrate the slowing down in the strongest European economies.
The Fed is going to take a decision about the interest rate. This is the crucial news for the following week. What's going on in the markets and what to expect?
The market is pricing that the Fed will leave the rate at the same level. Meanwhile the major players think that the Fed will start with the monetary easing in the second quarter 2024.
US stock markets started falling, while the US dollar is rising. What to expect from
Oil prices are rising and Russia banned the export of its petrol. What's happening in the markets?
Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.
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