Non-Stop Discussions

Market is generally calm as Japan is on holiday. This week’s focus will be Central Banks’ meeting and Brexit negotiation. Xi Jinping (Chinese President) claimed that Bank of China will aim to secure the financial system and improve the policy. The President repeatedly mentioned the presence of risk to financial stability. Today, Britain will have the second round of Brexit negotiation. David Davis (British Brexit Secretary) acknowledged a good start for the talks last month and added that this week things will get more serious and a lot of important issues, such as citizens rights, borders between Ireland and Northern Ireland and the cost of separation, will be settled. Till October, there should be three more meetings.

This week, European Central Bank will decide whether to tighten the policy. The Bank will also publish the quarterly Bank Lending Survey. Reserve Bank of Australia will show its protocol of recent meeting. Bank of Japan will also discuss its policy. Members might revise up their growth projections but reduce inflation prognosis. New Zealand will announce Consumer Price Index. Australia will release employment numbers. Britain will show Consumer Price Index. Germany will issue ZEW. Canada will announce Consumer Price Index and retail sales. Eurozone will release Consumer Price Index final for prior month. Canada will demonstrate international securities transactions. The United States will publish Empire State manufacturing index.

Chinese Gross Domestic Product widened 6.9% yoy in the second quarter. Economic activities got better. Industrial production growth boosted to 7.6% yoy. Retail sales rose from 10.7% to 11% yoy. Fixed asset investment in urban areas increased 8.6% yoy.