Weekly Preview Report 07/07/2017
WEEK ENDING JULY 14th 2017 (All times are GMT+3.)
Monday 10th July- China Consumer Price Index (YoY) (04:30).
Consumer prices for June are expected to remain unchanged at 1.5% growth. Year-on-Year growth has averaged at 1% for the three months ending May. Prices had been above 2% at the end of 2016 and beginning of the first quarter of 2017, dropping off sharply in March. A drop in food prices contributed the most to the headline inflation falling well below the 3% target for 2017.
Tuesday 11th July- JOLTS Report (17:00).
The number of job openings in June rose to 6.04 million in April representing a 4% rise on the previous month and indicating healthy growth in the U.S. labour market, with rising demand for labour. Job openings reached their highest level since 2000 at the end of April.
Wednesday 12th July- Bank of Canada Interest Rate Decision (17:00).
Comments made by Bank of Canada Governor, Stephen Poloz, in an interview with German magazine Handelsblatt on Tuesday, gave indication that the bank was ready to raise interest rates. He highlighted that the bank must anticipate inflation rising rather than react to it and the ability to do so would be dependent on other indicators. Markets have priced in an over 80% probability that rates will be raised by 25 basis points at the meeting in July.
Thursday 13th July- Producer Price Index (15:30).
U.S. Producer prices are forecast to contract by 0.1% in June after falling flat at 0% growth in May. Chronic oversupply in the commodities market has resulted in dropping prices which, in turn, has affected the producer prices. With PPI representing a precursor for CPI, a contraction for June suggests consumer price will continue to experience downward pressure towards the end of the second quarter.
Friday 14th July- Consumer Data (15:30).
Consumer spending and subsequently, consumer prices are expected to rise in June. Core Retail Sales data is expected to show a significant recovery with 0.2% growth in sales compared with a contraction of 0.3% in May. Last month represented the largest drop in over a year, as motor vehicle sales and discretionary spending dropped, according to the Census Bureau. The Core Consumer Price Index also missed expectations in the previous month as price grew 0.1% in May. The slowdown was attributed to a fall in spending on medical care, apparel and airline fares. Consensus estimates suggest a moderate 0.2% growth in June’s consumer prices, as a rise in consumer spending is expected to trickle through to prices.
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