On the U.S. economic calendar this week, we’ll get new reports on new and existing home sales, durable goods orders, initial unemployment claims, and the advanced reading on real (adjusted for inflation) GDP growth in the second quarter.
The consensus forecast is the real GDP growth slowed to 1.8% in the second quarter, down from 3.1% annualized growth in the first quarter or 2019. Europe will be in focus this week as the European Central Bank meets on Thursday, with rate cuts generally expected to be kept on hold for now, while in the U.K. Boris Johnson will take over as the next Prime Minister and leader of the Conservative Party. As the Financial Times reports, “Boris Johnson looks set to finally take the keys to 10 Downing Street on Wednesday and begin forming his first government. A united and clear transition plan is seen as vital for Mr. Johnson, who has vowed to deliver Brexit ‘do or die’ by October 31.” Economic reports due out in the Europe this week will cover flash composite PMI for France, Germany, and the euro zone, along with the Ifo Institute’s Business Climate Index in Germany. Have a great week and don’t forget to register for our upcoming and best-ever ISRI 2019 Commodity Roundtables Forum to be held in Chicago from September 11-13, 2019!