Quite a big day for the markets as far as announcements are concerned, headlined by OPEC meetings ADP Non-Farm Employment Change, the results of UK Bank Stress Tests and a speech by ECB President Mario Draghi.

The OPEC Meetings are crucial to help determine world oil prices. While they do not have explicit control over the actual price of oil, the meetings are convened to agree on oil production levels as well as current world oil supply. A build up of world oil inventories will obviously drive down oil prices, drastically affecting economies that rely on oil exports. As there is a current glut in oil inventories around the world, many countries that rely on oil exports are hoping that oil production is cut in order to re-balance world oil prices.

ADP Non-Farm Employment Change figures dominate the announcements coming out of the US. The US are also releasing quite a few other pieces of data, including: Core PCE (Personal Consumption Expenditure) Price Index, Personal Spending, Personal Income, Chicago PMI, Pending Home Sales, Crude Oil Inventories and their Beige Book. Meanwhile, Fed Reserve Member Jerome Powell is set to speak. This is all occurring in the early hours of tomorrow morning.

ADP figures are quite an important piece of information as it gives an indication of employment growth with the US. These figures are generally released a couple of days before the official government figures, which are used to help determine monetary policy set by the Fed Reserve Bank. The price index data is the change in price of goods and services purchased by consumers. This can help determine in which direction inflation is heading, which is also important in helping to determine monetary policy. Personal Spending figures are a reflection of consumer spending sentiment and confidence in the economy. Personal spending also has an effect on inflation. Personal Income reflects the change in personal income growth. Higher wages, mean more income to purchase goods and services, which in turn affects inflation. The PMI data is important as it reflects the strength of the manufacturing industry in the Chicago area. Home sales data shows the relative strength of the housing sector. Crude Oil data shows the fluctuations in oil inventories within the US, while the Beige Book gives a detailed account of the economic health across 12 different districts within the US. The Fed Reserve also looks at this to help determine monetary policy.

The UK are not releasing much information today, but what they are releasing is crucial for the economy. This is headlined by the Bank Stress Test results. The stress test applies synthetic market conditions to the balance sheets of large banks in an effort to determine the banks’ stability and capital reserve adequacy. In other words, how susceptible are they to future economic shocks if one were to occur. The Bank of England (BOE) is releasing its Financial Stability Report. This is an assessment of conditions in the financial system and potential risks to financial stability – the evidence on strains and imbalances can provide insight into the future of monetary policy. Lastly, they are releasing their FPC (Financial Policy Committee) Statement. This statement includes a detailed analysis of the UK economy, including strength and weaknesses as well as potential risks. It also details potential solutions to these risks. All of these reports come together and help the Monetary Policy Committee (MPC) determine monetary policy. They are also releasing GfK Consumer Confidence data.

Out of Europe, they are releasing several pieces of data, while ECB President Mario Draghi and German Buba (German Central Bank) President Jens Weidmann are due to speak. Data due for release includes: German Retail Sales & Unemployment Change, French & Italian Prelim CPI and finally European CPI & Core CPI Flash Estimates. CPI figures are all crucial to determine inflation in the larger Euro economies as well as Europe itself. Inflation data is vital to help the ECB set future monetary policy. Retail Sales is important as it helps gauge consumer sentiment and consumer confidence, while the Unemployment Change indicates the strength of the labour market in the EU’s largest economy.

Elsewhere, Canada is releasing GDP, RMPI  (Raw Materials Price Index) and IPPI (Industrial Product Price Index) figures. Meanwhile, the Swiss are releasing Their UBS Consumption Indicator & KOF Economic Barometer.