In this coming week, the market players in the economy will be contemplating the release of the final reading on Thursday about the U.S. third quarter gross domestic product for new clues with regards to economy’s strength and additional hints about the monetary policy’s future path.
For the time being, the market participants will be looking forward to an announcement about the monetary policy on Tuesday from the Bank of Japan. Most investors are anticipating that the bank will hold onto its negative interest rates and will keep constant the target for the 10-year government bond yield.
Furthermore, the market participants will be concentrating on Monday’s survey data about the German business confidence to measure the attitude following the decision of the European Central Bank to extend its bond-buying program longer than it was originally anticipated earlier this month.
Traders in the U.K. are looking forwards to the final reading of the British growth data for additional indications with regards to the how the Brexit decision is having a persisting effect on the economy.
Elsewhere, the market players will be looking at the data on Friday about the gross domestic product in Canada to measure the economy’s health.
Here are the five top events on the economic calendar that could affect the markets:
- Final estimate for the U.S. third quarter GDP
At 8:30 AM ET (13:30GMT) Friday, the U.S. is due to release the final figures for the economic growth of the third quarter.
The data is predicted to disclose that there was a growth of 3.3% for the economy in the three months ended September 30. The growth is an improvement from the initial estimate of 3.2% and a jump from the second quarter growth of only 1.4%.
The reports about home sales, personal shopping, and durable goods orders will also be in the center, while the investors try to assess if the largest economy in the world is strong enough to be able to withstand next year’s further rate increases.
2. Policy announcement by the Bank of Japan
The latest rate decision and monetary policy statement by the Bank of Japan (BoJ) are set for Tuesday during Asian hours. The governor of BoJ, Haruhiko Kuroda, will hold a press conference following the announcement to discuss the decision.
On Friday, the Reuters poll indicated that the central bank in Japan is anticipated to maintain the negative interest rate unchanged at -0.1%, while it keeps the 10-year government bond yield at approximately 0.0% while the weaker yen and positive overseas conditions predict well for the Japanese economic prospects.
From the poll, it was also indicated that the analysts are expecting that the BoJ will maintain the net amount of the Japanese government bonds that is annually purchased at approximately 80 trillion yen.
3. German Ifo business sentiment
The Ifo German research institute is planning to release a report on the German business sentiment on Monday at 09:00GMT (4:00 AM ET). The market players are expecting that the index will rise to 110.7 this month, the highest reading since April 2014.
The monthly index is based on an analysis survey of about 7,000 German firms in the construction, wholesale, manufacturing, and retail sectors.
4. Final Q3 GDP for the U.K.
On Friday, the Office for National Statistics is planning to release a third estimate on the U.K. third quarter economic growth at 09:30GMT (4:30 AM ET).
The report is predicted to confirm that the economy grew by 0.5% from July-September, an unchanged amount of an initial reading. The report indicated that the British economy pushed off the shock following immediately after the Brexit referendum on June 23.
The economy is likely to grow by 2.3% on a year-over-year basis. This growth is unchanged from the original estimate.
5. Canadian growth figures
On Friday at 8:30 AM ET (13:30GMT), Canada is due to release its monthly economic growth figures. The data is anticipated to show that in October, the economy grew by 0.1%, after a growth of 0.3% in September.