On Friday, at the end of the week, market participants need to focus on five important economic events. This will help investors get a good start during next week’s sessions.
1. China’s trade surplus with the United States jumps as imports fall
The Chinese trade surplus with the United States rose by 12 percent in yuan terms in the first 6 months of this year, according to the Chinese Customs Agency.
Chinese exports to the United States fell by 2.6 percent in the first six months of this year compared to the same period last year, while imports shrank by 25.7 percent. The data are likely to upset US President Donald Trump, who claimed on Thursday that China did not keep its promise to increase US agricultural export purchases.
Bloomberg quoted officials in the capital Beijing as saying no such agreement had been reached, while China’s Ministry of Commerce said Thursday that trade discussions with the United States had not yet resumed.
2. PPI adds more inflation in the United States
On Friday, with a few US economic reports, wholesale inflation figures (PPI) were released a day after core consumer prices rose higher than economists’ forecasts.
The data will play an important role in Federal Reserve Chairman Jerome Powell’s opinion, who admitted this week that he was concerned that weak inflation would be more persistent than expected.
Powell’s testimony reinforced market expectations that the Federal Reserve will cut interest rates by 25 basis points at its July 30-31 meeting. The dollar index, which measures the strength of the greenback against a basket of major currencies, is trading down for the third day in a row.
3. International Energy Agency consideres abundant oil supplies in 2019 as US output jumps
The International Energy Agency (IEA) said on Friday that the rise in US oil production would exceed slow world demand, leading to abundant supply over the next nine months. The International Energy Agency (IEA) forecast in its monthly report that demand for crude oil for the Organization of Petroleum Exporting Countries (OPEC) might drop to just 28 million barrels per day in 2020, with expansion from outside the Organization of Petroleum Exporting Countries (OPEC) gaining 2.1 million barrels per day, of which the United States is expected to produce 1 million bpd alone.
Oil continues to trade higher amid tensions in the Persian Gulf and ongoing storm warnings in the Gulf of Mexico.
4. Dow Jones towards a new record
US stocks opened higher on Friday, pushing the Dow to new record highs after the index closed above 27,000 for the first time ever on Thursday. Dow Jones futures rose 90 points or 0.3%, and S & P 500 futures rose 7 points or 0.2%, while Nasdaq 100 futures rose 22 points or 0.3%. Global stocks gained more support today after expectations that Jerome Powell promised further easing of monetary policy at the end of July.
European stock markets rose mostly on Friday despite profit warnings from Daimler, which put pressure on the auto industry, while Asian stocks closed with strong gains.
5. Retirement of Boeing’s 737 program manager
According to the company’s note, Eric Lindblad, the Boeing 737 program manager, will retire within weeks, as the company continues its fight to return its 737 MAX to service.
Boeing Corp., a New York-based company, plans to change the head of the next aircraft project, Mark Jenks, to run the troubled 737 programs after two of the top-selling 737 MAX crashed, killing nearly 350 people within five months.
Jenks was at the head of the Boeing aircraft’s new airplane project, which is likely to be launched soon.