What to Expect this Week

This week, in the United States, the earnings season starts. It is expected that several large corporations will report strong profits for the second quarter of 2010 as record-low interest rates continue to help the economy. Moreover, inflation may rise slightly. However, retail sales are likely to drop in June as consumers spending deteriorated due to uncertain economic conditions.
TradingEconomics.com 7/11/2010 7:29:19 PM

In the Euro Area, the consumer prices flash estimate will likely be confirmed at 1.4% due to a decline in food prices. Moreover, the euro zone should record a trade surplus in May as exports growth in recent months is stronger than imports. Also, industrial production may rise for 12th consecutive month led by strong activity in Germany. In Japan, the central bank meets but we don't expect any changes in the current monetary policy. That said, it will be interesting to watch Japan's political scene as the coalition led by the Democratic Party of Japan lost its control over upper house in Sunday's elections. In the United Kingdom, inflation may drop in June as petrol prices decreased. In Canada, trade surplus is likely to increase as exports rose more than imports in May. Finally, China, the world's third largest economy, will release its second quarter GDP, industrial production and inflation figures which may indicate some overheating.