The US PPI will come out on Thursday, May 12, at 15:30 MT time.
Weaker Chinese economy will impact the global economy and markets
Financial experts at Danske Bank suggest that there’s an ascending risk for global markets because a dipping Chinese economy will have a devastating impact on the global economy as well as markets.
No one denies that China happens to be the primary contributor to the world economy, generating one-third of global surge. The Asian country acted as a main driver behind the global revival in 2016. Commodity exporting emerging markets derived benefits from both higher volumes as well as prices, while developed markets witnessed a surge in exports to China and also other emerging markets. With the Chinese economy decreasing this year, the lift to the world economy rebounds and it’s a huge reason why financial analysts look for a high in the PMI cycle in H1.
The steep ascend in commodity prices observed in 2016 was pulled mostly by higher Chinese activity. Well, with Chinese companies consuming approximately 50% of global metals, this Asian country appears to be a number one driver of commodity prices. Moreover, for the last few months, both metal and crude prices have gone down, which could be explained by the softer Chinese economy.
The US CPI will come out on Wednesday, May 11, at 15:30 MT time (GMT+3).
Representatives from 15 oil-rich nations attend OPEC meetings. They discuss a range of issues regarding energy markets and, most importantly, agree on how much oil they will produce.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.