September’s private sector PMIs are due out on Wednesday. Expect the Caixin Manufacturing PMI to have the greatest impact on risk sentiment on the day.
Going into the week, industrial profit figures due out on Sunday that will also draw interest.
Expect the markets to be sensitive to any major speed bumps amidst U.S-China tensions.
The Chinese Yuan ended the week down 0.81% to CNY6.8238 against the U.S Dollar.
It could be quite a week for the Pound. September is coming to a rapid end and the EU Leaders’ Summit is later in the week.
As things stand, Britain and the EU are nowhere near a blueprint. With the Internal Market Bill now also in the loop, is it judgment day? The markets have been waiting since the summer of 2016 to get a sense of what Brexit will look like.
With Johnson at the helm, the risk has always been for Britain to pull out of talks. Is this the week that the curtain comes down on the EU and its demands?
U.S – China
There’s never a dull moment. With the Presidential Election debates kicking off this week, China will likely remain a hot topic.
With Trump trailing Biden, time is running out, and smear tactics are more than likely. The markets may not like it, however.
Presidential Election fever is picking. Brokers are calling for more margin to manage an anticipated spike in volatility. Trump continues to attack China on COVID-19 and tech.
The first of the Presidential Election Campaigns in the week ahead will set the tone.
Investors will get a sense of who the market favors during the course of the debate…
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.