Top news to follow this week

1.Development of trade relations between the United States and China
The market focus will be mostly tuned to the next possible steps in the trade dispute between the US and China. President Trump will probably announce new tariffs for about $200bln. for imports from China on Monday. Trump urges China to reduce its trade surplus by $ 375 billion with the United States.

2. U.S Housing data.
The Commerce Department will publish a report on building permits and housing permits for August this Thursday. Data is expected to show that permits have fallen by 0.1% to $1.310mil. last month, while new homes are expected to gain 5.8% to $ 1.240mil. The Fed Speakers are also quiet before their meeting on 25-26 September, which is expected to raise interest rates.

3. Inflation data in the UK.
Analysts expect the annual consumer price index to reach 2.4%, which is slower than the 2.5% increase observed in July, while the inflation forecast is 1.9% to 1.8%. In addition to the inflation report, retailers will focus on monthly retail sales data that will be available on Thursday as additional health information for the economy.

4. The expectations of Bank of Japan to keep its target, the short-term interest rate to -0.1% and yields on 10-year government securities reaching around zero at the end of the two-day meeting. The central bank is expected to discuss whether the escalating global trade strain could undermine the confidence that the export-dependent economy will maintain moderate expansion. Japan and the US are likely to hold a second round of trade talks Friday between Economy Minister Toshimitsu Motegi and US State Attorney Robert Lighthizer. Tokio wants to prevent rigorous tariffs on car exports and reject US demands for a bilateral free trade agreement. JPY will continue to move mainly from Trump's decisions, not so much from Japan's central bank policy.

Source: Investing.com
Picture: Pexels.com

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