There are several announcements set for release later today and in the early hours of tomorrow morning, with Europe, UK & US leading the way.

Europe is releasing German Trade Balance, French Government Budget Balance and French Industrial Production data. The trade data reflects the change in the difference in value of imports and exports. Being Europe’s largest economy, the health of their terms of trade for Germany is quite important as they are seen as the economic leader of Europe. The budget figures are important as they reflect the overall economic health of Europe’s second largest economy while their Industrial Production data indicates the strength/weakness of the industrial sector.

The UK is releasing Goods Trade Balance, Construction Output and Consumer Inflation Expectations. Like Germany, the trade balance data is vital to the UK. In an uncertain time for the country since Brexit, it is vital that the UK at the very least, meets forecasts for its announcements to maintain confidence within the economy. Construction Output reflects relative strength within the construction industry, while the inflation data can be used to gauge consumer confidence – more confident consumers tend t spend more money. However since Brexit, the value of the pound has plummeted. This means that more pounds are required to buy products from overseas. This is another driver of inflation.

The US is releasing Prelim UoM (University of Michigan) Consumer Sentiment & Inflation Expectations, while also releasing Final Wholesale Inventories data. Consumer Sentiment is just that – consumer sentiment. Basically it reflects consumer confidence. Like the UK, inflation data can reflect consumer confidence. As confidence rises, people spend, therefore there’s more demand, which means higher prices  to control demand, which contributes to inflation. The inventory data indicates what inventory/stock levels are held by wholesalers.

Elsewhere, Japan is releasing BSI (Business Survey Index) Manufacturing Index & M2 Money Stock, Australia is coming out with Home Loans figures, China is releasing CPI & PPI data and finally, Switzerland is releasing its Unemployment Rate.