Earlier today, China released important data that will set the tone for the rest of the day. Numbers from the country’s statistics office showed that the economy’s economy grew at an annualized rate of 6.2%. This was in line with the expectations. It was the lowest growth rate in more than 27 years. On a QoQ basis, the economy expanded by 1.6%, which was better than the previous quarter’s 1.4%. In June, the retail sales increased by 9.8%, which was better than the expected 8.5%. The industrial production increased by 6.3% while fixed asset investment increased by 5.8%. In response to the data, the country’s stocks rose and the Australian dollar rose as well. Today, the earnings season will kick-off officially, with the release of the quarterly financial report of major banks like Citi Group and Charles Schwab.
On Tuesday, investors will receive the CPI data from New Zealand and the minutes of the last meeting by the RBA. In New Zealand, investors expect that the CPI for the second quarter was 1.7%, which will be higher than the previous 1.5%. On a QoQ basis, the CPI is expected to have risen by 0.6%, up from the previous 0.1%. In the UK, the market will receive the employment data. The unemployment rate is expected to remain unchanged at 3.8% while the claimant count is expected to decline by 18.9k from the previous 23.2k The average earnings index + bonus for the month of May is expected to have remained unchanged at 3.1%. In Germany, investors will receive the ZEW current conditions and the economic sentiment for the month of July. The US will release the retail sales data and the import and export price data. In the earnings calendar, investors will receive data from Blackrock, CSX, Dominos, Goldman Sachs, J&J, JP Morgan, Netflix, United Airlines, UnitedHealth, and Wells Fargo.
On Wednesday, Turkey will release the retail sales data. This will come a few days after Turkish president, Recep Erdogan vowed to continue supporting the economy after firing the central bank governor. The UK will release the CPI data on Wednesday. Investors expect the headline CPI to have remained at 2.0% while the core CPI to have increased slightly to 1.8%. In the EU, Eurostat will release the CPI data that are expected to remain unchanged. The US will release the building permits data while Canada will release the CPI numbers. On the same day, the Fed will release the Beige Book. On the economic calendar, Abbot Laboratories, Alcoa, Bank of America, Kinder Morgan, and Texas instruments will release their earnings.
On Thursday, Japan will release the export and import data while Australia will release the employment numbers. The UK will release the retail sales data while Philadelphia Fed will release the manufacturing index. On the earnings calendar, American Express, Bank of New York Mellon, BB&T, Danaher, Dover, Invesco, Nucor, PayPal, Sketchers, Travelers, and Western Alliance Bancorp will release.
On Friday, Japan will release the national CPI numbers and the foreign investment in Japanese stocks data. In Germany, the country will release its PPI and WPI numbers while Canada will release the retail sales data. In the US, investors will receive the Michigan current conditions and inflation expectations numbers. On the earnings calendar, eBay, Honeywell, Schlumberger, and VF Corp will all release their earnings.