20 Aug 2018 Today's Economic & #Commodity #Futures Perspectives
Weekly market focus -- The U.S. markets this week will focus on (1) whether mid-level US/Chinese trade negotiations on Wednesday and Thursday produce any progress, (2) whether President Trump this week levies any new sanctions on Turkish President Erdogan's government for still refusing to release American pastor Brunson, (3) this week's Fed Jackson Hole conference and Fed Chair Powell's speech on Friday, (4) the Treasury's sale of 5-year TIPS on Thursday, (5) the wind-down of Q3 earnings season with only 18 of the S&P 500 companies scheduled to report, and (6) a light economic calendar with the main events including Wednesday's FOMC minutes, housing reports on Wednesday and Thursday, and July durable goods orders on Friday.
In Europe, the focus will be on Thursday's Eurozone Aug manufacturing PMI (expected unchanged at 55.1) and Thursday's ECB July 26 meeting minutes. The European markets will continue to closely watch the Turkish situation, which has been a big negative factor for European banks. The European markets are also keeping a close eye on Brexit and Italy's budget process.
In Asia, the focus will mainly be on the Chinese markets ahead of this week's US/Chinese trade talks. The Shanghai Composite index last Friday fell to a new 2-1/2 year low and showed a sharp -4.52% weekly decline. By contrast, the Chinese yuan last Friday edged to a new 1-week high against the dollar on speculation that the Chinese government wants to push the yuan higher ahead of this week's US/Chinese trade talks. Trump administration officials have complained about the -7.5% loss in the yuan seen in the last two months, which has reduced the negative impact of U.S. tariffs on Chinese exporters.