A long holiday weekend will provide U.S. investors time to absorb the positive U.S. employment data released Friday — which may have made a Fed hike in two weeks all the more likely. When the U.S. workweek resumes this Tuesday, fresh trade data from China and a Bank of England announcement will provide more clues as to the state of the shifting global macro environment.
Monday, September 7: U.K. football club Manchester United announces fiscal fourth-quarter results. Founded in 1878, Man U has won 20 league titles — the most of any U.K. team. In other Man U financial news, the team missed its opportunity this past week to trade star goalkeeper David de Gea to Real Madrid. The reason? Key paperwork was not sent in time and officials missed the filing deadline by two minutes, resulting in finger-pointing between the two teams and de Gea remaining in northern England for the remainder of the season. Ironically for a goalie, the deal slipped through the net.
Tuesday, September 8: The National Bureau of Statistics of China kicks off its August primary monthly economic indicators data release cycle with the publishing of trade numbers. Both headline exports and imports were down 8.2 percent year-over-year in July on the back of lower demand from Europe. The move this past month by the People’s Bank of China to devalue the yuan will likely make its first significant impact in the September set of data, rather than in this release.
Wednesday, September 9: Euro zone bonds rallied after European Central Bank president Mario Draghi hinted at increased easing this past week. The euro zone continues to exhibit weak inflation, and solid U.S. jobs numbers increased the likelihood that the Federal Reserve will hike rates this month.
Thursday, September 10: The Bank of England makes its policy announcement. The U.K. pound fell to a multiyear low versus the euro late this past week as economic concerns in the U.K. trumped the prospect of increased ECB easing. Despite deflationary pressure in the U.K., inflation index-linked gilts traded on Friday at nearly –0.9 percent yield as investors in the country remain concerned that loose monetary policy will ultimately lead to price pressure.
Friday, September 11: Initial September University of Michigan U.S. consumer sentiment index data will be released. In August the headline index fell to 91.9 from 93.1 in July, as stock market turmoil dampened the mood of shoppers.
Sunday, September 13: A total estimated 100 million people are descending on the northwestern Indian city of Nashik to partake in the 55-day celebration of Kumbh Mela, considered the world’s largest peaceful gathering. The festival is a Hindu pilgrimage in which the faithful bathe in rivers deemed sacred. Nashik is one of four sites to host the festival, which occurs every three years, working out so each city hosts every 12 years. Fearing loss of crowd control, Nashik has implemented precautions such as a no-selfie zone.
