Financial markets gear up for yet another potentially game-changing meeting this week
Although the week began with the prospect of a meeting between the American and Russian presidents in Budapest to discuss the Russian-Ukrainian war, President Trump has since stated that he is only willing to negotiate if he sees a chance of reaching an agreement.
There is still no agreement in the US on the government shutdown,
despite reports during the week that a compromise between the two parties may be close. US inflation data was released on Friday, revealing that inflation rose less than expected.
The dollar strengthened overall during the week, mainly due to the sharp weakening of the Japanese yen.
The forint weakened against both the dollar and the euro last week.
What can we expect this week?
We are looking forward to a very busy week. On Monday, corporate profits from China will be released at a time when companies in several industries are constantly undercutting each other in an attempt to gain market share. This will be followed by the National Bank of Hungary's (MNB) housing price index. In the eurozone, lending data will be released, and Germany will publish its IFO economic sentiment index. In the US, the Dallas Fed will publish its manufacturing index.
Tuesday starts with the German Gfk consumer confidence index, followed by eurozone inflation expectations, US house prices, and the Richmond Fed's manufacturing index.
From Wednesday onwards, events suddenly accelerate. Spanish GDP and retail sales. Then the US interest rate decision in a situation where the central bank has been flying blind for weeks due to a lack of data.
Early Thursday morning, Japan will announce its interest rate decision, with the big question being whether there will be a further rate hike amid the rapidly weakening yen. French, German, Italian, eurozone, and, of course, Hungarian GDP data will be released, followed by the ECB's interest rate decision in the afternoon. But if that weren't enough,
the US and Chinese presidents will also meet in Singapore on Thursday, where many are hoping for a resolution to their conflicts.
US GDP figures would also be released, but they are not being published due to the government shutdown.
On Friday, industrial producer prices and labor force data will be released in Hungary. On the international front, Japanese inflation, Chinese PMI, and inflation data from several European countries will be released, while the day will end with the Chicago Fed PMI data.
Cover photo (for illustration purposes only): Getty Images
