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.
Japanese economy contracts most for four years
In the third quarter, the Japanese economy shrank the most for more than four years due to the fact that Japanese companies reduced spending, thus threatening to affect the investment outlook next year because the export-reliant Asian country grapples with decelerating global surge as well as trade frictions.
The dive in the world's number three economy contributes to signs in Asia and the European bloc of weakening momentum. Recent data in Australia and China disclosed a deceleration in surge as well as stoking fears about the wider influence of the China-U.S trade conflict.
In the July-September quarter, the Japanese gross domestic product slumped at an annualized rate of about 2.5%. It appears to be the worst tumble since the second quarter of 2014 - from a 2.8% leap in the second quarter, as updated data from the Cabinet Office disclosed.
The decline, in part powered by a number of natural disasters, which made factories cut output, turned out to be deeper than an initial forecast of a 1.2% shrink and also versus experts’ median estimate for a 1.9% slump.
Additionally, the capital expenditure component of GDP went down by 2.8% from the second quarter, which is worse than the anticipated 1.6% tumble as well as the preliminary outcome of a 0.2% sink.
It happened to be the most impressive slump since the third quarter of 2009 due to the fact that retailers, wholesalers, information as well as communications machinery reduced spending, as the Cabinet Office data revealed.
Japan’s manufacturers' mood worsened for a second straight month in December. It’s expected to dive further.
While experts actually expect the Japanese economy to revive in the current quarter because factories ramped up output following the natural disasters, there’re fears that the China-U.S. trade conflict could affect global surge and impact export-led Japan.
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
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.