TOP 5 news of the week! Exclusive materials of TeleTrade

In the coming week, all attention will be focused on the United States, as inflation data are released. UK GDP data will show how the economy is holding up against the backdrop of a rate hike. Data from China may point to deflation risks in the world's second-largest economy. All the most interesting things are in our top!

US inflation

On Thursday, the US will publish inflation data for July. They will show whether price pressure is decreasing and whether the Fed is really close to completing an aggressive cycle of raising interest rates.

Lower numbers will increase the likelihood that Fed policymakers will refrain from raising interest rates at the September meeting after raising by a quarter of a percentage point last month.

On Friday, the US will publish data on the consumer price index for July. At the same time, it is expected that the main producer prices will increase by 2.3% compared to the previous year.

During the coming week, Philadelphia Fed President Patrick Harker, Atlanta Fed President Rafael Bostic and Fed Chairman Michelle Bowman will speak.

Pause in stock market rally

The short-term trajectory of the stock movement may depend on whether Thursday's inflation data indicate a decline in consumer prices.

Investors are also closely watching the dynamics of Treasury bond yields, which have shaken the markets in recent days, rising to new annual highs after the downgrade of the US credit rating by Fitch.

Rising yields on treasury bonds, which are considered among the safest investments in the world because they are backed by the US government, may weaken demand for stocks.

U.S. employment data released on Friday showed that while job growth continued at a moderate pace in July, wage growth remained faster than expected, reinforcing concerns that the Fed may keep rates at a higher level for longer.

UK GDP

U.S. employment data released on Friday showed that while job growth continued at a moderate pace in July, wage growth remained faster than expected, reinforcing concerns that the Fed may keep rates at a higher level for longer.

The Bank of England raised rates in the UK to a 15-year high of 5.25% last Thursday, which was the fourteenth consecutive increase.

Inflation in the UK reached a 41-year high of 11.1% in October last year and declined more slowly than in other countries, amounting to 7.9% in June. This is the highest indicator among all major economies.

Deputy Governor Ben Broadbent said that maintaining relatively high rates over a long period was key to reducing inflation, even though the Bank of England sees only minimal economic growth in the coming years.

Inflation in China

China will publish trade data today, followed by inflation data for July on Wednesday. They are expected to show a drop in consumer prices amid concerns about the prospects for the world's second-largest economy.

China's economy rebounded strongly in the first quarter after severe restrictions were suddenly lifted at the end of last year due to the pandemic, but the recovery has slowed in recent months due to weakening demand at home and abroad.

In recent weeks, authorities have taken a number of policy measures aimed at supporting the flagging recovery, although details have been scant and investors expect more.

Eurozone data

In the eurozone, Germany will publish data on industrial production. The report is expected to show a decline amid slowing global demand, especially from China.

The German economy stagnated in the second quarter of 2023, failing to meet forecasts for moderate growth. Weak purchasing power, higher interest rates and low factory orders have put pressure on the eurozone's largest economy.