Global markets were concentrating on the Federal Reserve’s meeting last week which saw a second consecutive 75 basis points interest rates hike. No hints were given to investors in which direction the Fed will move in September, as Fed Chair Jerome Powell noted that it is now time to analyse the incoming data. So, this marks an important week for markets as the US will be releasing its nonfarm payroll data on Friday. The Reserve Bank of Australia has a monetary decision to discuss on Tuesday and the Bank of England will follow on Wednesday. Among the big cap companies releasing earnings this week is Starbucks, Airbnb and Alibaba. 

 

Nonfarm payrolls  

Market attention will focus on the US labour market on Friday which will release its nonfarm payrolls data. Last month’s report showed jobs growth accelerated +372,000 in June, whilst wages were 0.3% higher on the month, or +5.5% higher on the year. This and next month’s data will be vital for the Federal Reserve September meeting where the central bank will decide whether more rate hikes are necessary. Spiralling wages could force the Fed to move at a faster pace. The Atlanta Fed’s latest data shows wages growing 6.7% in June. 

 

Reserve Bank of Australia 

Annual inflation in Australia surged to 6.1% in June, which leaves analysts anticipating another double hike from the Reserve Bank of Australia (RBA) as this was the highest CPI rate recorded since June 2001, when annual inflation also reached 6.1%. Speaking at a forum in July, RBA governor, Philip Lowe, said that RBA’s goal is to return inflation to a target of 2 – 3%, “in a way in which the economy continues to grow and unemployment remains low.” In July, RBA hiked its interest rates for the third month in a row, lifting its cash rate by 50 basis points. 

 

Bank of England 

The Bank of England (BoE) is also expected to hold its monetary policy meeting this week with analysts anticipating a potential 0.5% hike, previously hinted by boss Andrew Bailey. UK inflation surged to 8.2% in June, up from 7.9% in May further pointing to more potential rate hikes. 

 

OPEC 

OPEC and OPEC+ meetings are due to take place on Wednesday. OPEC and non-OPEC partners agreed in June to stick to a planned output increase in August which would see oil production increase by 648,000 barrels per day (bpd) in both July and August. However, last week it was reported that the group was 2.84 million bpd short in June meaning it is expected to continue to underperform. Members are expected to discuss production quotas for September and perhaps the rest of 2022. 

 

US Earnings  

Earnings season continues to remain a focal point for many investors as more large cap companies prepare to release their earnings reports. This week, we should expect earnings reports from Starbucks, PayPal, Uber and Airbnb. Alibaba is set to report earnings on Thursday which could affect Asian markets. Pinterest is also due to report earnings on Monday, and unlike its other social media rivals the platform has been experiencing revenue growth due to an increased sales market in the US. 

Earnings calendar 

01.08	02.08	03.08	04.08	05.08
Activision Blizzard (ATVI) AMC    Arista Networks (ANET) AMC    Pinterest (PINS) AMC	Caterpillar Inc (CAT) PMO    Advanced Micro Devices (AMD) AMC    PayPal Holdings (PYPL) AMC    Starbucks Corp (SBUX) AMC    Gilead Sciences Inc (GILD) AMC    Airbnb (ABNB) AMC    Uber Technologies (UBER) AMCu    Beyond Meat (BYND) E	Moderna (MRNA) PMO    Lucid Group (LCID)AMC    Lumentum Holdings (LITE) PMO	Ball Corp (BLL) PMO    Eli Lilly and Co (LLY) PMO    Fiverr International (FVRR) PMO    Amgen (AMGN) AMC    Block Inc (SQ) AMC    Alibaba (BABA) E    Twilio (TWLO) AMC    Virgin Galactic (SPCE) AMC

 

Economic calendar (BST) 

Mon Aug 1	1:30am	JPY	Final Manufacturing PMI
	2:00am	AUD	MI Inflation Gauge m/m
	2:30am	AUD	ANZ Job Advertisements m/m
	2:45am	CNY	Caixin Manufacturing PMI
	All Day	CHF	Bank Holiday
	1st-3rd	EUR	German Retail Sales m/m
	8:15am	EUR	Spanish Manufacturing PMI
	8:45am	EUR	Italian Manufacturing PMI
	8:50am	EUR	French Final Manufacturing PMI
	8:55am	EUR	German Final Services PMI
	9:00am	EUR	Final Manufacturing PMI
		EUR	Italian Monthly Unemployment Rate
	9:30am	GBP	Final Manufacturing PMI
	10:00am	EUR	Unemployment Rate
	All Day	All	OPEC-JMMC Meetings
	All Day	CAD	Bank Holiday
	2:45pm	USD	Final Manufacturing PMI
	3:00pm	USD	ISM Manufacturing PMI
		USD	Construction Spending m/m
		USD	ISM Manufacturing Prices
	Tentative	USD	Loan Officer Survey
Tue Aug 2	12:50am	JPY	Monetary Base y/y
	2:30am	AUD	Building Approvals m/m
	4:35am	JPY	10-y Bond Auction
	5:30am	AUD	Cash Rate
		AUD	RBA Rate Statement
	7:00am	GBP	Nationwide HPI m/m
	7:30am	AUD	Commodity Prices y/y
	8:00am	CHF	SECO Consumer Climate
		EUR	Spanish Unemployment Change
	8:30am	CHF	Manufacturing PMI
	Tentative	EUR	Spanish 10-y Bond Auction
	Tentative	EUR	French 10-y Bond Auction
	Tentative	GBP	10-y Bond Auction
	2:30pm	CAD	Manufacturing PMI
	3:00pm	USD	JOLTS Job Openings
	All Day	USD	Wards Total Vehicle Sales
	Tentative	NZD	GDT Price Index
	11:30pm	AUD	AIG Construction Index
	11:45pm	NZD	Employment Change q/q
		NZD	Unemployment Rate
		NZD	Labor Cost Index q/q
Wed Aug 3	2:00am	NZD	ANZ Commodity Prices m/m
	2:30am	AUD	Retail Sales m/m
	2:45am	CNY	Caixin Services PMI
	7:00am	EUR	German Trade Balance
	7:30am	CHF	CPI m/m
	7:45am	EUR	French Gov Budget Balance
	8:15am	EUR	Spanish Services PMI
	8:45am	EUR	Italian Services PMI
	8:50am	EUR	French Final Services PMI
	8:55am	EUR	German Final Services PMI
	9:00am	EUR	Final Services PMI
		EUR	Italian Retail Sales m/m
	9:30am	GBP	Final Services PMI
	10:00am	EUR	PPI m/m
		EUR	Retail Sales m/m
	2:45pm	USD	Final Services PMI
	3:00pm	USD	ISM Services PMI
		USD	Factory Orders m/m
	3:30pm	OIL	Crude Oil Inventories
Thu Aug 4	2:30am	AUD	Trade Balance
	7:00am	EUR	German Factory Orders m/m
	9:00am	EUR	ECB Economic Bulletin
	9:30am	GBP	Construction PMI
	12:00pm	GBP	BOE Monetary Policy Report
		GBP	MPC Official Bank Rate Votes
		GBP	Monetary Policy Summary
		GBP	Official Bank Rate
	12:30pm	USD	Challenger Job Cuts y/y
	1:30pm	CAD	Building Permits m/m
		CAD	Trade Balance
		USD	Unemployment Claims
		USD	Trade Balance
	3:30pm	Nat Gas	Natural Gas Storage
	11:30pm	AUD	AIG Services Index
Fri Aug 5	12:30am	JPY	Average Cash Earnings y/y
		JPY	Household Spending y/y
	2:30am	AUD	RBA Monetary Policy Statement
	6:00am	JPY	Leading Indicators
	7:00am	EUR	German Industrial Production m/m
		GBP	Halifax HPI m/m
	7:45am	EUR	French Industrial Production m/m
		EUR	French Prelim Private Payrolls q/q
		EUR	French Trade Balance
	8:00am	CHF	Foreign Currency Reserves
	9:00am	EUR	Italian Industrial Production m/m
	1:30pm	CAD	Employment Change
		CAD	Unemployment Rate
		USD	Average Hourly Earnings m/m
		USD	Non-Farm Employment Change
		USD	Unemployment Rate
	3:00pm	CAD	Ivey PMI
	8:00pm	USD	Consumer Credit m/m
Sat Aug 6	Tentative	NZD	RBNZ Statement of Intent