Weekly financial market overview 16.08.-22.08.
Main events of the previous week
On August 18th the Fed published minutes from the last meeting that was held in July. From the minutes, it appears that representatives of the regulator's management are increasingly agreeing that the Fed should begin to taper the asset repurchase program this year. The minutes suggest that most participants of the Fed's leadership believe that the US economy has recovered enough for the Fed to start rolling back stimulus measures by the end of this year. Recently, more and more participants of the Fed leadership have been supporting the tapering of stimulus measures. In turn, the head of the Fed, Jerome Powell, noted that it is not yet clear how the US economy will cope with the next surge of COVID-19. Powell did not comment on what will happen next with the Fed's policy, and did not elaborate on how, in his opinion, the economy will behave in the coming months. The statistics released on August 18 indicated a more significant-than-expected drop in the number of new buildings in the US in July. The number of homes that began construction in the United States in July fell by 7% from the previous month to 1.534 million at an annual rate. According to the revised data, in June the number of new buildings was 1.65 million, not 1.643 million, as previously announced. Experts on average predicted a decrease in the number of new buildings in the United States in July by 2.6% compared to the previously announced level of last month - to 1.6 million.
US. The number of initial jobless claims for the week was registered in the amount of 348 thousand, which is 29 thousand less than the week before and 15 thousand less than predicted by analysts.
The volume of retail sales in July decreased by 1.1% versus June, while the growth rate of the retail trade was expected to decrease by 0.3%. In turn, excluding data on gasoline and car sales from the indicator, retail sales in July fell by only 0.4%.
China. Retail sales rose 8.5% in July compared to July 2020, while retail sales were expected to grow by 11.5%.
Industrial production in July rose 6.4% compared to July 2020, while industrial growth was expected to be 7.8%.
The unemployment rate in July rose by 0.1 percentage points and amounted to 5.1%.
Key events this week
- On Monday, the level of business activity in August will be known in the Eurozone and the United States.
- On Wednesday, the US will report on sales of durable goods for the month of July, and will also publish data on changes in oil inventories for the week.
- On Thursday, the US is to publish data on the number of initial jobless claims for the week.
- On Friday, the United States will report on personal expenses and incomes of citizens for the month of July.
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