Investing.com - In the week ahead, market players will be focusing on the outcome of Thursday’s European Central Bank meeting to see if policymakers will step up monetary stimulus to counteract the negative economic shock from the Brexit vote.
Investors will also be looking to Friday’s survey data on euro zone business activity, as well as a report on German business confidence, for fresh indications on the health of the region’s economy in wake of Britain's vote to exit the European Union.
Meanwhile, the U.K. will stay in the spotlight as key economic indicators for the British economy are released.
In the U.S., investors will eye a pair of reports on the housing sector to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.
Ahead of the coming week, Investing.com has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.
1. European Central Bank policy meeting
The European Central Bank's interest rate decision is due at 11:45GMT, or 7:45AM ET, on Thursday, with most of the focus likely to be on President Mario Draghi's press conference45 minutes after the announcement.
The consensus is that the ECB will leave interest rates on hold, while Draghi is forecast to strike a dovish tone and perhaps hint at further stimulus to offset the hit to the economy from Britain's decision to leave the European Union.
2. Flash euro zone PMIs for June
The euro zone is to publish preliminary data on manufacturing and service sector activity for July at 08:00GMT, or 4:00AM ET, on Friday, amid expectations for a modest decline.
Ahead of the euro zone PMI's, France and Germany will release their own PMI reports at 07:00GMT and 07:30GMT respectively.
3. German ZEW business survey
The ZEW Institute will publish its July German business climate index at 09:00GMT, or 5:00AM ET, on Tuesday, amid expectations for a sharp deterioration from 19.2 to 9.1, as the Brexit shock hit business confidence. The current conditions index is also forecast to decline, from 54.5 to 52.0.
4. U.K. CPI, employment & retail sales data
The U.K. Office for National Statistics will release data on consumer price inflation for June at 08:30GMT, or 4:30AM ET, on Tuesday. Analysts expect consumer prices to rise 0.4%, after increasing 0.3% a month earlier.
At 08:30GMT, or 4:30AM ET, Wednesday, the ONS will publish the latest jobs report. The amount of people receiving jobless benefits is expected to rise by 4,000 in June, with theunemployment rate holding steady at 5.0%, while wage growth including bonuses is forecast to rise 2.3%.
On Thursday, the ONS will produce a report on June retail sales at 08:30GMT, or 4:30AM ET, amid expectations for a decline of 0.6% last month. Core sales are forecast to fall 0.7%, as British consumers are thought to have slowed down on their purchases both before and after the referendum.
The U.K. will close out the week with a reading on July manufacturing sector activity at 08:30GMT, or 4:30AM ET, Friday. The manufacturing PMI is forecast to inch down to 49.4 from 52.1 a month earlier.
The Bank of England held off from cutting rates last week, but hinted that it will ease monetary policy at its next meeting in August as it devises the exact size and nature of its stimulus measures.
5. U.S. housing data
The Commerce Department is to publish a report on housing starts and building permits for June at 12:30GMT, or 8:30AM ET, on Tuesday. The data could show that permits rose 0.6%to 1.150 million last month, while housing starts are forecast to inch up 0.5% to 1.170 million.
On Thursday, the National Association of Realtors is to release data on existing home sales for June at 14:00GMT, or 10:00AM ET, amid forecasts for a decline of 0.7% to 5.47 million.
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