Business World

Tuesday 12 November 2019

All eyes on Asia and US during the August lull

In Asia, China's yuan devaluation is likely to remain a focus
In Asia, China's yuan devaluation is likely to remain a focus

Colm Kelpie

The August lull has well and truly set in. Last week, China stepped up to the plate to help fill in the void, helpfully devaluing its currency and giving commentators a few days of interesting economic news to discuss. Greece also played its customary part.

Domestically, there's very little on the horizon this week, and it's likely to be a similar picture for the rest of the month.

On corporate news, Glanbia has its first-half results on Wednesday.

Across the water, housing starts in the US, minutes from the latest Federal Reserve meeting and Japanese economic growth are all on the horizon in the coming days.

Data from the United States tomorrow is expected to show that housing starts probably climbed in July for a second month.

Steady job gains, low mortgage rates and a gradual easing of lending standards are propelling sales, economists believe.

Wednesday is expected to show that Consumer prices in the US probably crept higher in July, leaving the year-over-year advance well short of the Federal Reserve's inflation goal.

Speaking of the Fed, on Wednesday it will release minutes from its end of July meeting that may shed light on the debate within its walls over the timing of the first increase in the nation's benchmark interest rate since 2006.

Investors are pricing in a 42pc chance of a rate increase at the September meeting.

Thursday brings another deadline for Greece. The debt-riddled country must make a €3.2bn payment to the European Central Bank by this date.

In Asia, China's yuan devaluation is likely to remain a focus.

Three separate devaluations last week rocked global markets and sent world stocks, including carmarkers and luxury goods dealers, lower.

Japan will today release gross domestic product data for the second quarter and it's not expected to be good news.

Economists are projecting that the world's third largest economy contracted 1.8pc in the period as exports slumped and consumers cut back on spending.

China's economic slowdown and its impact on its trade-reliant Asian neighbours have also heightened the chance that any rebound in growth in July-September will be modest, analysts say. (Additional reporting agencies)

Irish Independent

Also in Business