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By HaleStewart March 23, 2015 7:46 am
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International Economic Preview For the Week of March 23-27

     The following news releases will be important to the financial markets next week.

Monday

Chinese Manufacturing PMI: with the continued talk of a Chinese slowdown and continued weakness in commodity prices, China’s manufacturing number has taken on a disproportionate importance.  Adding to the concern is this number has been fluctuating around the 50 level for the last three readings.

Tuesday

EU Markit Numbers: On Tuesday, Markit releases the flash estimates for the EU, including the all important composite number.  This indicator has been increasing in the last few readings, although the increase is largely attributable to the service sector number.  Also pay attention to the numbers that come from the four largest EU economies: Germany, France, Spain and Italy.

UK Inflation: like other developed economies, the UK inflation number has been decreasing for the last few readings, largely as a result of the drop in oil prices.  However, this decrease has given the Bank of England more policy latitude.

US Inflation: after the Fed removed the word “patience” from their policy statement, the market assumed a rate hike was a done deal within the next few meetings.  However, US inflation has bene printing some very low numbers, which could stretch out the Fed’s policy window.

Wednesday

US Durable Goods Numbers: this number has been weak over the last few readings, which may be the result of the strong dollar.  With the weaker industrial production numbers over the last few months, this number rises in importance.

Thursday

Japanese Inflation: the Y/Y Japanese inflation numbers have been decreasing since 2Q14 (although the GDP deflator has been increasing a decent rate).  The big issue is will this trend continue.

Hale Stewart is a former bond broker who has been writing about economics and financial markets since 2006 on the Bonddad Blog.  He is also a tax attorney with a domestic and international practice while also forming and managing captive insurance companies for US companies.   You can follow him on twitter at:@captivelawyer  

 

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