Look ahead: Japan CPI; UK consumer confidence; German business climate; JD Wetherspoon
UK consumer confidence and retail sales figures are set to be a focal point after the Bank of England signalled the economy was moving in the right direction for it to start cutting rates.
Germany releases its latest business morale reading. Japan’s inflation reading comes in the same week the Bank of Japan ended its negative interest rate policy. Plus, J D Wetherspoon reports H1 results.
(AI Video Summary)
Upcoming economic events
In today's "Look ahead" to 22 March, 2024, Angeline Ong gives an overview of some important economic events and how they may impact the markets. She starts off by talking about Japan's core consumer price index for February, which is expected to show a 2.8% increase compared to last year. This is important because it gives us an idea of how prices are changing in Japan.
Key UK data points
Next, Ong discusses some key events in the UK. She mentions the Gfk consumer confidence reading, retail sales, and CBI industrial trends orders. These numbers will help us understand how confident people are about the economy and how much they're spending on goods. The focus is on the exchange rate between the GBP/USD, as the British pound fell against the US dollar after the Bank of England's recent decision. This will affect the prices of goods imported from the US.
German EFA business climate index
Moving on to Germany, Ong talks about the EFA business climate index, which is expected to show an increase from last month. This is a measure of how optimistic businesses are about the economy, so it will be interesting to see if it continues to improve.
Canadian retail sales
In Canada, the focus is on retail sales for January. They are forecasted to increase by four-tenths of a percent compared to the previous month. This is important because it shows how much people are spending on goods in Canada.
Oil updates
Finally, Ong mentions the Baker Hughes oil recount in the US. This is significant because there has been a recent increase in oil prices. The recount will give us an idea of how much oil is being produced, which can impact the price.
JD Wetherspoon H1 earnings
She also briefly talks about JD Wetherspoon, a company that is releasing its first-half numbers. Their stock has been volatile, but it has been on an upward trend since December 2022. Ong emphasises the importance of the company's profit margin and how changing consumer behavior can affect the services industry.
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