In the short 4-day Global Week Ahead, the key event on tap — and likely until the FOMC meeting on September 21st — will be Thursday’s European Central Bank (ECB) meeting.
Euro area economists put out a call for further stimulus measures to be announced. They also expect a further downgrade of macro forecasts, specifically to consumer inflation.
The day before the key ECB meeting, Sweden’s Riksbank issues its rate decision. If the ECB’s deposit rate (at a negative -0.4% now) undercuts the Riksbank’s repo rate (-0.5%) via a possible ECB cut, don’t slam the door shut on possible future Riksbank actions too.
In North America, on Wednesday, the Bank of Canada (BoC) makes its latest pronouncements. At the end the week, there will be a fresh Canadian sounding on their unemployment rate and capacity utilization.
In Latin America, on Thursday, Banco Central de Reserva del Peru should leave its policy rate unchanged at 4.25%.
In Asia, a trio of central bank meetings happen this week. Neither the Reserve Bank of Australia, the Bank of Korea, and the Bank Negara Malaysia should not alter monetary policies.
Finally, political leaders from leading industrial nations — and a few others — were in China at Hangzhou City last weekend and into the start of this week for G-20 meetings.
Ahead of the arrival of presidents, prime ministers, central bank heads and their staffers, a fortune was spent to prepare Hangzhou for the world.
The theme of the G20 meeting is “Toward an Innovative, Invigorated, Interconnected and Inclusive World Economy.” Tellingly, U.S. President Donald Trump is not invited.
Now, let’s talk stocks.
Top Zacks #1 Rank (STRONG BUY) Stocks—
Tencent Holding (TCEHY - Free Report) : This is a bellwether $400 billion in market cap, China large cap tech stock. It is currently ranked as a long-term Zacks VGM of B too, based on an A in the Growth score. These types of stocks are on a big momentum run. Keep your eyes on China this week, including its big stocks.
Royal Bank of Canada (RY - Free Report) : With a rate meeting in play in Canada, and plenty of key macro data this week, key an eye on this major Canada bank. The stock is a long-term Zacks VGM of F, though. All good news is fully priced in.
Unilever (UN - Free Report) : This is a big $102 billion in market cap multi-national consumer staples player based in Europe. If Mario Draghi does juice the money machine in Europe this week, watch stocks like this.
Key Global Macro Events—
On Tuesday, the Bank of Australia holds an interest rate meeting. The 1.5% rate is not expected to change.
The final Eurozone composite Purchasing Manager Index (PMI) came out. It was 55.7.
The services PMI for the UK was 53.2.
Retail sales for the Eurozone was +2.6% y/y.
The composite Markit PMI for Brazil was 49.6. That’s below expansion, still.
On Wednesday, Brazil’s SELIC monetary policy rate is expected to go from 9.25% to 8.25%.
There is a Riksbank monetary policy meeting held in Sweden. The Riksbank rate is a -0.5% now, and it is not expected to change.
The ISM non-manufacturing index for the USA is expected to move up from 53.9 to 5.5.
On Thursday, the European Central Bank (ECB) announces its rate decision. It is at 0.0% on the main refi rate now. It is not expected to change that. President Draghi will give a press announcement after the meeting.
U.S. initial claims for unemployment look great at 236K.
The Fed’s George, Mester and Dudley speak.
On Friday, Canada’s capacity utilization rate comes out. It has been a high 83.3%.
Canada’s unemployment rate comes out too. It is 6.3% to 6.4%.
The Fed’s Harker speaks.