Investing.com - In the week ahead, investors will be looking ahead to Friday’s U.S. reports on producer prices and consumer sentiment for further indications on the strength of the economy and the likelihood of a near-term interest rate hike.
Markets will also be watching a raft of Chinese economic data, including a report on the trade balance as well as data on consumer price inflation.
Ahead of the coming week, Investing.com has compiled a list of these and a few other significant events likely to affect the markets.
1. U.S. PPI data, Michigan sentiment report
The U.S. Labor Department will release a report on producer price inflation for August at 8:30AM ET on Friday. The data is expected to reveal that inflation pressures remained subdued last month against a backdrop of lower oil prices and a strong dollar.
At 10:00AM ET Friday, the University of Michigan is to publish preliminary data on consumer confidence for September, amid expectations for a reading of 91.4. The index stood at 91.9 in August.
2. Chinese trade data
China is to release data on the trade balance during the Asian session on Tuesday. The report is expected to show that the country’s trade surplus widened to $48.2 billion last month from $43.0 billion in July.
Chinese exports for August are forecast to drop 6.0% from a year earlier, following a decline of 8.3% a month ago, while imports are expected to slump 8.2%, after falling 8.1% in July.
3. Chinese CPI report
Market players looked ahead to data on Chinese consumer and producer price inflation on Thursday for further hints on the strength of the world's second largest economy.
The report is expected to show that consumer prices rose 1.8% last month, compared to a reading of 1.6% in July, while producer prices are forecast to fall by 5.5%, which would be the 41st straight monthly decline and the worst reading since October 2009.
Fears of a China-led global economic slowdown has spooked traders in recent weeks. The turmoil in markets began when China unexpectedly devalued the yuan on August 11, sparking fears that the economy may be slowing at a faster than expected rate.
4. Bank of England "Super Thursday"
The Bank of England will release its rate decision and minutes of its Monetary Policy Committee meeting at 12:00PM London time, or 7:00AM ET, on Thursday.
Last month, the Monetary Policy Committee voted 8-1 to keep rates on hold at a record low 0.5%. Most market players expect the BOE to begin slowly raising interest rates in mid-2016.
5. Bank of Canada policy meeting
The Bank of Canada's latest interest rate decision is due at 10:00AM ET, on Wednesday. BOC Governor Stephen Poloz is expected to keep rates unchanged at 0.50%, following a 25 basis point cut at the bank's prior meeting in July.
Data last week showed that the Canadian economy fell into a technical recession, as weak oil prices and fears over a China-led global economic slowdown weighed.