Business Irish

Wednesday 20 November 2019

Jobless figures and tax returns are ones to watch

Employment Minister Ged Nash
Employment Minister Ged Nash Newsdesk Newsdesk

Unemployment figures, Live Register data, industrial production and the monthly services index are among the economic releases due this week.

Exchequer Returns are also due next week, and should show that tax receipts remained strong in August, helping to keep the budget deficit for the year well down.

Elsewhere, American employers probably added around 200,000 workers to their payrolls in August, offering Federal Reserve policy makers their last monthly labour-market snapshot before a September decision on interest rates.

Service industries in the world's biggest economy are forecast to expand in August near the fastest pace in a decade, while the trade deficit likely widened in July as slower global growth stymied export demand.

Canada's economy may have fallen into a recession in the second quarter, a report on gross domestic product will show.

And, in the wake of the Jackson Hole annual economic symposium in Wyoming, G20 finance ministers and central bank governors meet to discuss the global economy in the Turkish capital, Ankara, at the end of the week.

Tomorrow, focus will squarely be on China, as Beijing may say its official manufacturing purchasing managers' index fell to a three-year low in August, increasing pressure on the government to take action to shore up a deepening economic slowdown and declining stock market.

China stocks jumped more than 4pc for a second straight day on Friday as signs of fresh support from Beijing prompted more bargain hunting following the earlier plunge that panicked global markets.

But a rally in Hong Kong petered out, with the flagship Hang Seng Index .HSI changing course before the closing bell and losing 1pc.

China's surprise currency devaluation on August 11 and a survey showing deteriorating factory activity had helped trigger a savage selling spree, which at one point drove stocks down more than a fifth within a week.

The government resumed intervention in equities on Thursday to halt the biggest sell-off since 1996.

China's central bank strengthened the yuan's reference rate by the most in five months on Friday, a move that suggests policy makers are trying to "save face" before the September 3 parade to celebrate victory in World War II.

China's 2013 pledge to let markets play a decisive role is being put to the test after a $5 trillion tumble in shares since mid-June and the yuan devaluation. Expect more market volatility in the coming weeks.

Irish Independent

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