The equity markets in the United States snapped a three-week losing streak after rising for a third straight session on Friday. The advance in stock prices was driven by outsized gains across sectors. While the Dow Jones Industrial Average rose 2.7%, the S&ampP 500 (AMEX: SPY) and Nasdaq Composite Index gained 3.7% and 4%, respectively, last week.

Comparatively, the 10-year treasury yield surged over 3.5% on Tuesday and closed the week at 3.32%. Finally, prices of the West Texas Intermediate (WTI) crude fell below $82 per barrel last week before rising to $86 per barrel on Friday. It was the lowest level for crude oil prices since January 2022, but it gained pace after Russia’s President Vladimir Putin threatened to cut supplies.

The upcoming week will be quite eventful, given the plethora of economic reports that will be released in the U.S., Europe, and the United Kingdom. Let’s take a look at each of them closely to gauge what the market expects from the economy right now.

 

Consumer Price Index data

The Bureau of Labor Statistics will release the CPI or Consumer Price Index data on Tuesday. Inflation numbers for August are expected to accelerate to 8.7% in August from 8.5% in July. Additionally, core inflation which excludes fuel and food costs, is forecast to rise to 6.1% in August, up from 5.9% in July.

The pace of inflation has moderated in recent months after touching a 40-year high of 9.1% in June. Due to a slowdown in energy costs, prices across other commodities and services continue to rise on the back of lower unemployment rates and supply chain disruptions.

Data for the Producer Price Index (PPI) will be released on Wednesday. This metric tracks inflation from the standpoint of producers and wholesalers. The PPI fell by 0.5% in July after it rose 1% in June. In fact, the PPI’s annual gain decelerated to 8.9%, which was its lowest level since last October. A lower rate in August would indicate an easing of price pressures.

 

Retail sales data for August

The U.S. Census Bureau will release August retail sales data on Thursday, an indicator of consumer spending. In August, retail sales data might experience a slowdown after the metric was unchanged in July. But due to red hot inflation numbers, the purchasing power of individuals has been impacted, which should also stagnate retail numbers of the last month.

 

U.K. inflation

The U.K. inflation numbers for July will be released on Wednesday. In July, inflation in the U.K. stood at 10.1%, which was the highest rate of rising prices among G-7 countries for 40 years. Analysts expect the annual inflation rate in the U.K. to range around 10.2% in July as energy prices have soared.

Russia is threatening to cut supplies to Europe in opposition to the sanctions imposed against the country by the Western block. Due to the limited supply of energy and rising demand, Bank of England expects inflation to surge over 13% in early 2023.

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