US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Private consumption powers German surge in second quarter
In Germany, in the second quarter consumers turned to be the major source of surge, as data disclosed on Friday. It’s because Europe's number one economy derived the benefits of record-high employment, ascending wages as well as low interest rates.
In April to June, the German economy ascended by 0.6% percent, as the Federal Statistics Office informed, providing support to Chancellor Angela Merkel's campaign for re-election, revolving around a pledge to generate jobs and reduce taxes.
Private consumption inched up by 0.8%, adding 0.4% to ascend in GDP. A labor market hungry for manpower has powered wages, while low interest rates set by the ECB are stimulating German consumers to spend rather than save.
Private consumption still appears to be a reliable driver of surge, as many financial experts state.
Apart from private consumption, the German economy also benefited from state spending as well as investments in equipment and construction.
Stock significantly surged: S&P 500 and Nasdaq reached 6-week highs. The market sentiment may deteriorate today as Johnson & Johnson’s Covid-19 vaccine trails have been stopped because of the unexplained illness.
The Australian jobs data is announced on Thursday at 03:30 MT time.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.