This week, from November 20th to 24th, key economic events are set to influence global financial markets. Notable among them are the Bank of England Governor Bailey's speech, the US Core Durable Goods Orders month-over-month data, and the EIA's Crude Oil Stocks Change report. Additionally, the S&P Global Composite PMI releases for both the European Union and the United States will offer critical insights into economic activity.
These events could significantly impact market volatility, making it essential for investors to stay alert.
🇬🇧 BoE Governor Bailey Speech
The upcoming speeches by the Bank of England Governor Bailey, scheduled for Monday, November 20th at 20:45 GMT+2, and Tuesday, November 21st at 12:15 GMT+2, are anticipated to be significant for investors and market analysts. These addresses are expected to shed light on the future of the UK's monetary policy and the Bank of England's approach towards interest rates, which currently stand at 5.25%. With the next policy meeting set for December 14th, these speeches could provide crucial hints about the direction of future rate decisions.
Market participants will be keenly observing any indications that could influence the GBP/USD currency pair and the FTSE 100 index. As the central bank's views on economic conditions and inflation are key drivers of currency and stock market movements, these speeches have the potential to impact market sentiment and activity significantly.
🇺🇸 Core Durable Goods Orders m/m
On Wednesday, November 22nd at 15:30 GMT+2, the financial markets are gearing up for the release of the Core Durable Goods Orders month-over-month in the United States. This economic indicator, which reflects new orders placed with domestic manufacturers for delivery of hard goods, showed a growth of 0.5% in its previous release. However, current forecasts by analysts suggest that this time, the figure might remain unchanged.
Given its significance, any deviation from the forecast, whether positive or negative, could lead to notable movements in major financial assets, particularly the EUR/USD currency pair and indices such as the Dow Jones and SPX500.
🛢 EIA Crude Oil Stocks Change
On the same Wednesday, November 22nd, but at 17:30 GMT+2, another key economic event is set to unfold with the release of the EIA (Energy Information Administration) Crude Oil Stocks Change report. This data, which details the weekly change in the number of barrels of commercial crude oil held by US firms, is a critical indicator for energy markets.
In its last release, the figure stood at an increase of 3.592 million barrels, but current forecasts suggest a slightly smaller change for this upcoming release.
The significance of this report lies in its ability to influence global oil prices, particularly Brent and WTI (West Texas Intermediate) crude oil. A lower or higher than-expected change in crude oil inventories could signal shifts in energy supply, affecting global oil prices and, consequently, related sectors and economies.
🇪🇺 S&P Global Composite PMI
On Thursday, November 23rd, at 11:00 GMT+2, the financial markets will turn their attention to the release of the S&P Global Composite PMI for the European Union. This Purchasing Managers' Index is a significant economic indicator, providing insights into the health of the manufacturing and service sectors in the Eurozone. In its previous release, the PMI stood at 46.5, but current projections indicate a slight decrease to 46.1.
Such data can have a notable impact on the Euro's value and the European stock markets, particularly the DAX index, which is a major stock market index consisting of the 40 major German blue chip companies trading on the Frankfurt Stock Exchange.
🇺🇸 S&P Global Composite PMI
The final major economic release of the week will be the United States S&P Global Composite PMI, scheduled for Friday at 16:45 GMT+2. This indicator, which combines both the manufacturing and services sectors, is a key measure of the overall economic health and business activity in the U.S. After the previous reading of 50.7, there is an expectation for a slight increase in this upcoming release.
A rise in the PMI could signal strengthening economic conditions, potentially boosting investor confidence. This could have a positive impact on major U.S. stock indices, such as the Nasdaq and Dow Jones Industrial Average, which are sensitive to economic indicators and business sentiment.
That's it for this week! 👋
