Investors’ agenda will be marked next week by the publication of the latest inflation data in both the United States and Europe. In addition, the markets will be awaiting the publication of various consumer and business confidence indices.
Luis Francisco Ruiz, market analyst at CMC Markets, points out that the most recent readings on the price level situation will be the “most notable” data in the coming days. “They are decisive in knowing what the future monetary policy of the central banks will be,” adds the analyst.
Throughout the week, the CPI for February will be released for several countries in Europe and the euro zone, as well as the PCE, the indicator used in the US to determine the evolution of the prices of personal consumption goods. Ruiz points out that in both cases “a decline in the general rate is expected and that the underlying rate will become entrenched.”
European and US confidence indices
“The reason is that salaries are growing at a good pace, the labor market remains strong and it gives the impression that, as long as the underlying does not converge further downwards and begins to consolidate below 3%, it will be difficult for central banks lower rates before summer,” explains the analyst. As for the weekly agenda, this Monday the Spanish producer price index (PPI) will be published, as well as the business results of the investment company Berkshire Hathaway and new home sales in the United States.
On Tuesday the Gfk consumer climate index in Germany will be released; The Conference Board consumer confidence index for February and durable goods orders in the US; and Japan’s CPI in January. For Wednesday, several confidence indicators are expected from both consumers and business people in the euro zone, Italy and Spain; in addition to expectations of inflation and sales prices in the eurozone.
In the US, different mortgage indices, the quarterly GDP, the January goods trade balance and wholesaler inventories will be known. On Thursday, the consumer price indices (CPI) of different European countries will be published, such as France, Spain and Germany, which will also publish their retail sales and the unemployment rate for February. That same day, the January US PCE, the main inflation gauge for the Federal Reserve, and new jobless claims will be announced.
Finally, on Friday, the first day of March, inflation data and the unemployment rate for the euro area, and manufacturing PMIs for the United Kingdom, Germany, Spain, France, Italy and the eurozone will be released. In the US, the ISM and PMI for the manufacturing sector will be released, in addition to inflation expectations from the University of Michigan
