Take
Five: World markets themes for the week ahead – Reuters
G7
set for communique-tion breakdown * Summer of bond love * Growth pains * Soft
inflation ahead of ECB * China’s yuan is a one-way street *
Key
events in developed markets next week – ING
The
outcome of the Jackson Hole symposium and political developments in the UK and
Italy will help to steer trading in the week ahead. On the data front,
investors will be eyeing the final eurozone inflation number before the
September ECB meeting
Week
Ahead
– Nordea
Will
fiscal easing prevent further monetary madness? Era of unconventional monetary
policy may only just have begun but fiscal easing might save the day * Surge in
Swedish unemployment rate suggests rate cuts of 100bp
Weekly
Focus
– Danske
Bank
Euro
area: inflation readings before September ECB meeting * US: Capex orders (signs
of trade war?) * Brexit talks
Government
Bonds Weekly
– Danske
Bank
Volatility
in Bund and Buxl swap spreads - a reflection of a hedging need in swaps rather
than bonds as well as a modest reinvestment need from ECB * ECB purchases picking
up as we enter September and with the expected reopening of the QE programme * Failed
auction in Germany is not an issue for performance
China
Weekly: Retaliation not over yet – Danske
Bank
China
retaliated against Trump's tariff hikes on Friday. While countermeasures were
expected, it was a reminder that the trade war is alive and kicking. * The
retaliation is not over, though. China stated this week that it will announce
the names on its 'unreliable entities list' soon, a countermeasure to the
sanctions on Huawei. * USD/CNY moves to new 11-year high. We look for further
CNY weakness. * Monetary reform to pave the way for more easing. Our GDP
forecast for 2020 is lowered to 6.0% from 6.2% on continued trade war
headwinds.
Weekly
Market Comment
– Marc
Chandler
The
next US tax increase on Chinese imports goes into effect on September 1, and
Beijing has threatened to retaliate. The Federal Reserve and the ECB will ease
policy in the coming weeks. The
twice-delayed Japanese sales tax hike will be implemented in about five weeks.