What will drive the markets this week?
Global stocks hit new highs last week as investors seized on US inflation, as investors digested a largely solid set of recent economic data and earnings results. But shares in Asia-Pacific retreated in Friday’s trade, with South Korea’s Kospi leading losses among major markets.
August and September are historically the weakest months of the year for stocks. But the returns in August have so far countered that narrative and investors may be wondering if the trend will continue.
Though winding down, the earnings season continues this week with reports expected from major US retailers (Walmart, Target, Home Depot, Lowe’s, Kohl’s, and Macy’s). Semiconductor makers Nvidia and Applied Materials (AMAT) also report. Retail earnings will provide a clear outlook on consumer confidence and spending in the second quarter while reports from chipmakers will add to the debate chip woes.
Investors will also digest key economic reports including industrial production and manufacturing data for July, which will provide a better picture of the impact of supply chain disruptions around the world.
Monday, August 16:
- Japanese Industrial Production (June).
- U.S. New York Empire State Manufacturing Index (August).
- Indian Wholesale Price Index (WPI) index (July).
Tuesday, August 17:
- Earnings: Home Depot, Inc. and Walmart.
- U.K. Unemployment Claimant Count (July).
- U.K. Unemployment Rate (June).
- Eurozone Gross Domestic Product (GDP) (Q2).
- U.S. Retail Sales (July).
- U.S. Industrial Production (July).
Wednesday, August 18:
- Earnings: Target Corporation and Nvidia Corp.
- U.K. Consumer Price Index (CPI) (July).
- Eurozone CPI (July).
- U.S. Housing Starts (July).
- U.S. Building Permits (July).
- Canadian CPI (July).
- U.S. Federal Open Markets Committee (FOMC) Meeting Minutes.
Thursday, August 19:
- Earnings: Applied Materials Inc.
- Market Holiday in India for Ashura.
- U.S. Philadelphia Fed Manufacturing Index (August).
- People’s Bank of China (PBoC) Loan Prime Rate Announcement.
- Japanese National CPI (July).
Friday, August 20:
- U.K. Retail Sales (July).
- German Producer Price Index (PPI) (July).
- Canadian Retail Sales (June).