TRADING WEEK #38 NEWS ALERTS

Week Ahead

Investors will be closely watching the meetings of central banks across the globe next week, including the Federal Reserve, Bank of England and Bank of Japan policy meetings. Officials in the US are widely expected to give an update on the timing of the bank’s asset purchase tapering, but no significant changes are meanwhile expected from other major banks. Elsewhere, Canadians are voting for a new parliament on September 20th, while flash PMI surveys for the US, UK, Eurozone, Japan and Australia will provide an insight about the state of the global economic recovery.

The US Federal Reserve is seen holding the target range for the federal funds rate steady at 0-0.25 percent at the end of its two-day meeting on Wednesday, with investors eager to hear if the central bank will begin withdrawing stimulus this year as the economy rebounds. Fed Chairman Jerome Powell assured markets the central bank would take a measured approach to tapering bond purchases, but several policymakers have been calling for early tapering despite the recent slowdown in inflation numbers.

On the economic data front, notable publications include building permits and housing starts, the flash Markit PMI survey, second-quarter current account, new and existing home sales, Chicago Fed National Activity Index and NAHB Housing Market Index.