The Week Ahead: 5 Things to Watch on the Economic Calendar

The Week Ahead: 5 Things to Watch on the Economic Calendar

1. European Central Bank Policy Meeting

The European Central Bank's interest rate decision is due at 11:45GMT (7:45AM ET) on Thursday, with most of the focus likely to be on President Mario Draghi's press conference45 minutes after the announcement.

The consensus is that the ECB will leave interest rates on hold for the time being, while Draghi is forecast to strike a dovish tone and perhaps hint at further stimulus to offset the hit to the economy from Britain's decision to leave the European Union.

A recent Reuters poll of economists showed that slow growth and virtually non-existent inflation will force the ECB to extend and expand the scope of its asset purchase program in the coming months.

2. Chinese Trade Report for August

China is to release August trade figures at around 02:00GMT on Thursday (10:00PM ET Wednesday). The report is expected to show that the country’s trade surplus widened to $58.3 billion last month from $52.3 billion in July.

Exports are forecast to have dropped 3.5% in August from a year earlier, following a decline of 4.4% a month ago, while imports are expected to slump 1.2%, after plunging 12.5% in July.

Additionally, on Friday, the Asian nation will publish data on August consumer and producer price inflation. The reports are expected to show that consumer prices rose 1.7% last month, while producer prices are forecast to fall by 1.0%.

3. U.S. ISM Services PMI

The U.S. Institute of Supply Management is to release data on August service sector activity at 10:00AM ET (14:00GMT) on Tuesday. The gauge is expected to inch down 0.5 points to 55.0. Anything above 50.0 signals expansion.

The data takes on extra importance after the ISM manufacturing survey published last week showed a shocking contraction in activity.

Besides the services PMI, the coming holiday-shortened week could be a relatively quiet one with Wednesday's Fed Beige Book release and JOLTS jobs turnover data also in focus.

4. U.K. August Services PMI

The U.K. will release a reading on August service sector activity at 08:30GMT (4:30AM ET) on Monday. The services PMI is forecast to improve to 50.0 from 47.4 a month earlier.

Data released last week data showed that the manufacturing and construction PMI's both beat expectations, suggesting that the British economy remained resilient in wake of the U.K.’s decision to leave the European Union.

The U.K. will also produce a report on July manufacturing production at 08:30GMT (4:30AM ET) Wednesday.

5. Reserve Bank of Australia Rate Decision

The RBA's latest interest rate decision is due on Tuesday at 4:30GMT (12:30AM ET). Most economists expect no policy change, after the central bank surprised with a 25 basis point rate cut at its previous meeting to a historic low of 1.50% in an effort to boost sluggish inflation and spur economic activity.