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Sunday, August 11

11th Aug - Weekly Previews #4158


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Take Five: World markets themes for the week aheadReuters
Ready for a scary Eurozone GDP show? * US economy read out * China’s small move, big deal * Bond yields hit new lows * Argentina’s approaching elections

World Economy Week AheadBB
Germany to Reveal Size of Recession Risk: German output predicted to have contracted in second quarter

Key events in developed markets next weekING
Not a very cheery week for developed markets ahead. US data might be positive but trade and political developments will drive markets. On the flipside eurozone data should help figure out how bad the industrial slump really is. And will the hawkish Norges Bank hint at a September rate hike?

Global Week AheadScotiabank
Europe: A power struggle is occurring in Italy’s government that should shame both parties against the backdrop of decades of political instability. * US: Next week macro data, following week heavy line-up of Fed communications, including meeting minutes and the Jackson Hole symposium.

Week AheadNordea
The PBoC holds the key to global risk appetite as stabilisation of USD/CNY is the first prerequisite for calmer markets. Meanwhile markets are screaming for a USD liquidity injection from Jay Powell. Liquidity will be withdrawn instead.

Weekly FocusDanske Bank
News on the US-China trade war will continue to be in focus. The next key event is scheduled trade talks in Washington in September. * Any comments by members of the Fed and ECB will be scrutinised for signals of how much easing is in the pipeline. * On the data front, attention will turn to German ZEW, euro-area GDP for Q2, US core inflation and Chinese numbers on industrial production and retail sales.

Macro WeeklyABN AMRO
China and the US are fighting, Europe is hurting * Expect tit-for-tat trade war to continue * Eurozone industrial sector remains under pressure * Asian trade stabilising before most recent escalation trade conflict * We have lowered our growth forecasts by a few tenths in a number of countries

China WeeklyDanske Bank
US-China trade tensions reached a new low point this week. China is waving the 'rare earth card' in a sign of what might come next if Donald Trump adds more tariffs. * USD/CNY broke through the 7 level, triggering the official US label of 'currency manipulator'. We look for more CNY weakness but no devaluation. * Export data were better than expected, while producer prices hit deflation territory. Metal prices are softening but still do not point to a hard landing in China.

Yield OutlookDanske Bank
Rates and yields yet to bottom

Weekly Market CommentMarc Chandler
The US-China tensions remain the dominant driver of investor risk appetites. * In addition to, and not wholly separate from the conflict between the two largest economies, investors are concerned about the trajectory of growth and prices, and policymakers' reaction function.
 
FX Weekly – Nordea