Events to Look Out For Next Week

Welcome to our weekly agenda, our briefing of all the key financial events globally.

With the ongoing firmness in inflation globally and the more hawkish central bank outlooks, the bearish impacts are likely to continue next week for stock market. The week is packed with PMIs from Germany, Europe, UK and US, while the RBNZ Rate decision and Canadian Inflation are in the spotlight.

Monday – 20 February 2023

PBoC Interest Rate Decision (CNY, GMT 01:15) – In February, the PBOC added more cash into the financial system, while keeping its benchmark interest rate unchanged. The central bank injected 499 billion yuan ($73 billion) of one-year medium-term lending facility (MLF) loans at a rate of 2.75%, unchanged from its previous operation in mid-January.

Tuesday – 21 February 2023

Markit PMIs (EUR, GMT 08:30-09:00) – The preliminary Eurozone Composite February PMI is expected to have grow to 50.2 from 50.3, given a fall in Services sector in the Eurozone.
Markit PMIs (GBP, GMT 09:30) – The preliminary February Services and Manufacturing PMI in the UK are expected at contraction at 48.3 and 46.8 respectively.
Consumer Price Index and Retail Sales (CAD, GMT 13:30) – Canadian inflation is expected to grow for January on a  monthly basis to 0.7% m/m from -0.6% m/m, with core contracting at -0.4% m/m from -0.6% m/m. Retail Sales are anticipated to increase to 0.5% m/m for December. Meanwhile, the BoC announced a cautious pause to its rate hikes at its most recent meeting on January 25, hence these data could give the BoC some further breathing room as the impacts of the prior tightenings are assessed.
Manufacturing PMI (USD, GMT 14:45) – The preliminary Manufacturing PMI for February is expected to have declined further in contraction at 46.8 from 46.9 while Services PMI is expected to 46.6 from 46.8.

Wednesday – 22 February 2023

Wage Price Index (AUD, GMT 00:30) – Australian wages growth expected to ease to 0.7% frm 1% for Q4. This could provide direction for the RBA as rising number could support further hawkish stance from the bank.
Rate Statement & Interest Rate Decision (NZD, GMT 01:00-02:00) – As inflation data remains at 31-year high at 7.2% y/y, RBNZ could scale down its tightening policy only slightly with a 50 bps interest rate hike to 4.75%  inflation. The RBNZ has already raised rates by a total of 400 bps since October 2021 and at least 500 is expected, with a peak of 5.25% or higher.
IFO Business Climate, Assessment & Expectations (EUR, GMT 09:00) – The German IFO Business Climate is forecasted to rise to 89.3 in February down from 90.2, with Business expectations also a bit more pessimist, at 84.7 from 86.4
FOMC Minutes (USD, GMT 19:00) – The FOMC minutes should provide guidance on the pace for further aggressive rate hikes to quell still very elevated inflation rates.

Thursday – 23 February 2023

Gross Domestic Product (USD, GMT 13:30) – The Q4 GDP growth should show a boost to 3.0% from 2.9%, with boosts of $11 bln for nonresidential investment, $5 bln for residential investment, and $1 bln for government purchases, but a trimmings of -$4 bln for both consumption and wholesale inventories, -$2 bln for factory inventories, and -$1 bln for net exports. The revised data will still depict a quarter with a hefty inventory build, despite a big further decline in imports, leaving little room for inventories to add further to growth in 2023.

Friday – 24 February 2023

Personal Income/Consumption (USD, GMT 13:30) – Personal income is expected to rise after a 0.2% December gain. We expect a 1.3% rise in personal income with a 1.4% rise in compensation after a 0.5% gain, given a 1.2% January increase for hours-worked and a 0.3% rise for hourly earnings.

Click here to access our Economic Calendar

Andria Pichidi

Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.