Macroeconomic/ geopolitical developments
- The standout economic event last week was the Jackson Hole Economic Policy Symposium, but it ended up as a non-event, as Fed Chair Powell did not signal anything different than previously communicated with respect to removing policy accommodation.
- The chaos, unrest and terrorist activity in Afghanistan has had muted impact on global financial markets.
- The continuing global spread of the Delta variant of COVID-19 keeps markets susceptible to sporadic, “risk off” moves.
Global financial market developments
- Global stock averages probed higher with US indices leading the way to new record levels.
- US Bonds consolidate, prodding to higher, then lower yields.
- The US Dollar weakened.
- EURUSD and GBPUSD posted modest rebounds but remain vulnerable.
- Gold has rallied and eased near term vulnerability.
- The Oil and Copper price have rebounded.
Key this week
- Geopolitics:
- UK Public Holiday on Monday 30th August, markets closed.
- Watching the impact of the global spread of the COVID-19 Delta variant.
- Monitoring for a renewal of lockdowns or for further global lockdown easings.
- Central Bank Watch: Nothing of note from Central Banks this week.
- Macroeconomic data: Data standouts this week are the global Purchasing Managers Index (PMI) data from Markit and the US Institution of Supply Management (ISM) for Manufacturing and Services on Wednesday and Friday respectively, and also the US Employment report on Friday.
| Date | Key Macroeconomic Events |
| 30/08/21 | UK Public Holiday, markets closed; German CPI |
| 31/08/21 | China PMI; German Unemployment report; EU CPI; Canadian GDP |
| 01/09/21 | Australian GDP, global Markit and US ISM Manufacturing PMI |
| 02/09/21 | Nothing of note |
| 03/09/21 | Global Markit and US ISM Services PMI; US Employment report |
