What to Expect This Week

This week, financial markets in the United States are closed on Monday due to the Labor Day holiday. Later in the week, US Trade deficit for July is likely to have stayed at June low level and consumer confidence should pick up in September due to second round effects of the ongoing government stimulus plan.

In the Euro Area, the only significant release will be the Sentix Investor Confidence for September which is expected to improve further. In Japan, second quarter final GDP is likely to remain unchanged. In the United Kingdom, the Bank of England September monetary policy meeting may bring an increase in asset purchases by a further £25bln to £200bln. Yet, the BoE benchmark rate should be kept on hold at 0.5%. In addition, UK trade deficit is expected to narrow and industrial production to rise slightly. In Switzerland, unemployment rate is expected to rise further, pressuring the Swiss government to spend more in social benefits. In Canada, the Bank of Canada’s Governing Council meets but we don’t anticipate any change in the official rate and do not think they will introduce any new unconventional policy. In Australia, unemployment rate may rise to 6%. Finally, in New Zealand, the RBNZ’s monetary policy should remain unchanged.

Anna Fedec, contact@tradingeconomics.com
9/6/2009 11:32:23 PM