It could be a pivotal week for markets. Close attention will be paid to whether the US Federal Reserve will increase interest rates next week. The rate-setting committee is quickly running out of reasons to wait for more data following the latest CPI print. But Kevin Warsh, who is a Trump appointee, could still fly in the face of the inflation data and kowtow to the wishes of The White House.
The Bank of England and the Bank of Japan are set to announce their latest interest-rate decision, too. The BoE could leave interest on hold, whilst the BoJ is widely expected to raise the short-term policy rate by 25 basis points.
Staying in Japan, the annual inflation rate could have inched up from 2% in July to 2.1% in August. Elsewhere, the inflation rate in Malaysia could have remained unchanged at 1.8% in August. But the inflation rate in India could have risen to 4.7% in August from 4.45% a month earlier.
Turning to China, the latest reading on the housing market could show that the property sector is still under pressure. The August house-price index is expected to show that property prices fell 3.1% in August. It would be the 37th consecutive month of annual declines. The silver lining, if there is one, could be that the pace of decline is slowing.
Worryingly for China, the unemployment rate is not showing signs of slowing. The jobless rate could be unchanged at 5.2% in August.
Earnings are few and far between next week. But Trip.com (TCOM) is expected to report a 10% rise in second-quarter revenue, though earnings could be lower. In the first quarter, the online travel agency posted a 16% jump in revenue. The moderation in second-quarter revenue growth could be due to slower domestic demand and regulatory adjustments. In July, China’s State Administrator for Market Regulator fined the company for abusing its dominant market position.
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