Fundamental analysis: market highlights for 7-11 August

The market outlook for the approaching week encompasses several key events, including notable speeches, economic data releases, and the ongoing trajectory of Brent oil prices. Here's a breakdown of what to expect:

US Federal Reserve Updates

The week kicks off with an insightful speech by Michelle Bowman, the esteemed governor of the US Federal Reserve, scheduled for Monday. Market participants will closely analyse any hints regarding potential adjustments in monetary policy, as these could influence inflation dynamics. Simultaneously, Patrick Harker, President of the Federal Reserve Bank of Philadelphia, will deliver a speech on the same day.

UK's Economic Pulse

Monday also brings us a speech by Huw Pill, a prominent Bank of England's Monetary Policy Committee member. This event coincides with the release of preliminary GDP data for the second quarter of 2023 and final GDP figures for July, both to be unveiled by week's end.

China's Trade Landscape

Tuesday takes the spotlight with the publication of China's trade balance for July. Analysts project a decline in the trade balance, with expectations resting at 479 billion yuan, a decrease from June's 491 billion yuan. On Wednesday, July's Consumer Price Index (CPI) is set to be disclosed, with the current forecast indicating a figure of -0.5%.

Insights from Japan

Japan enters the scene with noteworthy economic data. Tuesday sees the release of the country's balance of payment statistics for July, anticipated to reach 2.24 trillion yen. This marks an increase from June's figure of 1.70 trillion yen. Additionally, data on average wages for May will also be made available.

Brent Oil Dynamics

As a prominent feature of the market landscape, the Brent oil market continues to experience upward pressure on prices due to ongoing supply shortages. This positive trajectory has extended for six consecutive weeks, and market experts predict this trend to persist throughout the upcoming week.

In summary, the week ahead offers a mix of speeches, economic indicators, and commodity trends. Market participants will closely monitor these developments for insights into potential market movements and economic shifts.