Welcome to the Investors Trading Academy economic calendar of the week.
Each week our news analysts review the upcoming economic events that you should be monitoring.
As the new month begins traders are getting ready to book year end profits.
Traders will be aggressively looking for action pushing volumes higher than usual before things
slow down for the holiday season.
With most central bank meetings behind and the next meeting not scheduled until December
which will make economic data key to trading.
A busy week lies ahead of us, both in economic and corporate terms.
PMIs from around the world, covering both manufacturing and services, will provide plenty
of fuel for those assessing whether various parts of the global economy are going forward
or backwards.
While it is probably too early to see the impact of the recent Chinese rate cut in the
China PMIs this week, but any signs of improvement here will allay concerns.
The Federal Reserve kept rates unchanged, but the tweaks to the statement suggest that
December is now fractionally more ‘live’ where possible rate increases are concerned
than it was a week ago.
However, data needs to pick up considerably before the market really begins to think more
seriously about a move at the final meeting of the year.
The week kicks off on Sunday in China when the National Bureau of Statistics releases
the purchasing manager indexes for both manufacturing and the services sectors.
The data is effectively ancient history following stimulus measures employed by the central
bank.
On Monday, the private sector variant of China’s manufacturing purchasing manager’s index
from Caixin will be issued.
And on Wednesday Caixin will issue its services purchasing managers index.
Eurozone manufacturing PMI will be release for individual countries as well as the overall
Eurozone.
Also the UK numbers will be release.
In the US, the week begins on Monday with the release of the ISM manufacturing index.
Economists expect that the index eased from 50.2 to 49.7.
Interesting the final reading of the competing Markit purchasing managers index for October
is also issued and the preliminary reading was a lot higher than the ISM index at 54.0.
On Tuesday the Reserve Bank meets to decide interest rate settings.
And for the first time in six months, a decision to cut rates is being seriously entertained.
Wednesday will see the ADP private jobs data from the US a leading indicator for the Nonfarm
payroll report.
The release of the monthly US jobs report on Friday will be very closely watched; given
it will be the second to last report before the Federal Reserve´s next policy meeting
in December.
152K jobs are forecast to have been created, up from 142K last month, and while the unemployment
rate is expected to tick up to 5.2% from 5.1%.
Average hourly earnings are forecast to rise by 0.2% from 0% MoM.
Second in importance will be Thursday´s Bank of England monetary policy committee decision
on rates, accompanied by the latest meeting minutes and Inflation Report.
Scattered throughout the week are the standard new month data releases including Eurozone
retail sales, Australian employment numbers as well as Canadian jobs data.