Investing.com – In what is meant to be a hectic week, investors will receive monetary policy updates from a number of major central banks, with Wednesday's Federal Reserve decision highlighting. The calendar also includes trading calls, the US work reports for July, euro area GDP, and another stream of revenue reports, including from the iPhone manufacturer Apple.
Here's what you need to know to start the week.
1. Federal Reserve Decision
The Fed is expected largely for the first time in more than a decade when it delivers its last Wednesday. The money markets have priced themselves off with a one-quarter percentage point cut in interest rates, after half a month's short-cut expectations rose sharply in the middle of the month before they resigned.
reduction of the balance. Trump believes the measures are holding back growth.
This reduction in the balance, known as quantitative tightening, is scheduled to end in September, but with just one month left, why wait? Many political decision makers in the Fed are happy to have two policy tools ̵
2. BOE, BOJ Meetings
In a busy week for central bank meetings, the Bank of England is expected to hold on hold for its meeting on Thursday, when politicians are waiting for the Brexit fog to be cleared.
Investors will follow the BOE's assessment of the UK economy's current downturn and how it can react in the event of a severe Brexit under new Prime Minister Boris Johnson.
has fallen more than 5% since May, mainly due to fear of a Brexit without agreement. Johnson, less than a week at work, has already clashed with Brussels after again asking for the resignation agreement to be rewritten and promised to take the UK out of the EU on 31 October anyway.
The Bank of Japan is also expected to stay steady as it delivers on Tuesday, but may reinforce its commitment to keeping interest rates at its bottom. The European Central Bank's decision to hold last week gives BoJ some respite, in the midst of a transition to a more rude attitude from central banks worldwide.
3. Trade talks
The trade talks between the US and China will resume on Tuesday with US trade representative Robert Lighthizer and finance minister Steven Mnuchin traveling to Shanghai. Deputy Prime Minister Liu Han is expected to lead the talks for China.
With Trump's November 2020 re-election campaign not yet in full swing and Wall Street at record highs, Trump may not feel much pressure for the & # 39; big beautiful deal & # 39; he has spied, but the markets will still want something.
The previous round of interaction collapsed in May, and Trump increased the $ 200 billion US dollars in Chinese imports to 25% from 10% and threatened to slam 25% tariffs on a further $ 300bn worth of products.
4. U.S. job report
In a big week of financial data, US work reports for July will steal the spotlight, with a consensus forecast for the economy adding jobs, declining from 224,000 in June. Unemployment is expected to cross, while average hourly wages are expected to rise month-on-month and year-on-year.
Market watchers will also get updates about ,, and this week. The bulk of the data will come after the Fed meeting and will confirm whether interest rate developments were needed as investors try to measure the monetary outlook for the rest of the year.
Elsewhere, data from the euro area on Wednesday is expected to show a slowdown in the second quarter, while a report on the same day is expected to indicate that inflation remains below the ECB's target of just under 2%. . NYSE :), Spotify (NYSE:), Qualcomm (NASDAQ :), Verizon (NYSE :), General Motors (NYSE 🙂 and ExxonMobil (NYSE :).
Apple's third-quarter financial income will be in focus when investors are waiting to see if handset sales have improved, especially in China in the midst of the ongoing US-Chinese trade conflict. Apple reported that quarterly sales fell 5% year-on-year in the previous quarter, mainly due to weak growth in China, where iPhone sales fell 17%.
Technician's services, which have helped to make a profit, will also be closely monitored.
Apple's (NASDAQ 🙂 share price has risen 33% this year, ending Friday's $ 207.74 increase.
– Reuters contributed to this report.