Investing.com - In the week ahead, investors will continue to focus on U.S. economic reports to gauge if the world's largest economy is strong enough to withstand a rate hike in the coming months, with Friday’s retail sales data in the spotlight.
Meanwhile, China is to release what will be closely watched trade and inflation data amid ongoing concerns over the health of the world's second biggest economy.
Elsewhere, Germany is to publish preliminary data on second quarter economic growth on Friday for further hints on the strength of the euro zone's economy.
In the U.K., traders will be eying a report on manufacturing production for fresh clarity on the health of the economy in wake of Britain’s decision to leave the European Union.
Outside the G7, traders will be awaiting a monetary policy announcement from the Reserve Bank of New Zealand on Wednesday amid growing expectations for a cut in interest rates.
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. U.S. July retail sales report
The Commerce Department will publish data on July retail sales at 12:30GMT, or 08:30AM ET, Friday. The consensus forecast is that the report will show retail sales rose 0.4% last month, after increasing 0.6% in June. Core sales are forecast to inch up 0.2%, after gaining 0.7% a month earlier.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy. Consumer spending accounts for as much as 70% of U.S. economic growth.
2. Chinese trade data for July
China is to release July trade figures at around 02:00GMT on Monday, or 10:00PM ET, Sunday. The report is expected to show that the country’s trade surplus narrowed to $47.6 billion last month from $48.1 billion in June.
Chinese exports are forecast to have dropped 3.0% in July from a year earlier, following a decline of 4.8% a month ago, while imports are expected to slump 7.0%, after falling 8.4% in June.
On Tuesday, China is to publish reports on July consumer and producer price inflation. The data is expected to show that consumer prices rose 1.8% last month, while producer pricesare forecast to fall by 2.0%.
Additionally, the Asian nation will publish data on July industrial production, fixed asset investment and retail sales on Friday.
3. German second quarter GDP
Germany will publish a preliminary report on second quarter economic growth at 06:00GMT, or 2:00AM ET, on Friday. The euro zone's largest economy is forecast to expand 0.3% in the April-June period, slowing from growth of 0.7% in the preceding quarter.
The euro zone will release revised second quarter growth data shortly afterwards at 09:00GMT, or 05:00AM ET, Friday. An initial estimate published last week showed that the region's economy grew 0.3% in the three months ended June 30, compared to 0.6% in the first quarter.
4. June U.K. manufacturing production
The Office for National Statistics is to produce data on U.K. manufacturing production for June at 08:30GMT, or 4:30AM ET, on Tuesday, amid expectations for a decline of 0.2%.Industrial output is forecast to inch up 0.1%.
The Bank of England cut interest rates to a record-low 0.25% and launched fresh easing measures last week in a bid to buffer the economy from a downturn following the Brexit vote.
Economic activity in the U.K. is expected to slow down sharply in the second half of the year as businesses face uncertainty over the country’s future direction in wake of the U.K.'s vote to exit the European Union.
5. Reserve Bank of New Zealand rate decision
The Reserve Bank of New Zealand’s monetary policy update is due at 21:00GMT, or 5:00PM ET, on Wednesday. Most market analysts expect the central bank to cut rates by 25 basis points to a record low 2.0% in an effort to shore up the economy and boost growth.
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