Crude Oil Monthly Reports Expected, U.S. Inflation Data and China Trade Figures In Focus

U.S. shares closed higher and the dollar surged against a basket of global currencies on Friday, buoyed by better-than-expected jobs data. While the S&P 500 traded 0.19% higher, the Nasdaq Composite added 0.18%, the Dow Jones Industrial Average closed higher at 22,0192, ending at its eighth straight record high.

The market’s overall performance was supported mainly by gains in banking sectors as data showed U.S. employers hired more workers than expected in July. The Bureau of Labor Statistics on Friday released July jobs data that showed the country created 209,000 new jobs last month. The reading topped Wall Street forecasts for 175,000 jobs to have been added in July.

In total, the U.S. has created nearly 450,000 new jobs in the past two months, pushing the jobless rate back down to a 16-year low of 4.3% from 4.4% recorded in the previous month. On a monthly basis, pay rose 0.3% in July to an average of $26.36 an hour, remaining at the year-over-year growth rate of 2.5% as in the prior month.

In the week ahead, the Commerce Department will publish inflation figures for July on Friday which are expected to ease up 0.2%; whereas, core inflation is forecast to rise 0.2%. On a yearly base, core CPI –which is considered by the Federal Reserve as a better gauge of longer-term inflationary pressure because it excludes the volatile food and energy categories – is projected to climb 1.7%, still below the central bank’s target of 2% core inflation.

Before the release of inflation data, reports on producer prices will be published on Thursday. This week’s calendar also features reports on JOLTS job openings due on Tuesday, nonfarm productivity and unit labor costs on Wednesday, as well as weekly jobless claims on Thursday.

On Tuesday, China is to release July trade figures which are forecast to show that the country’s trade surplus widened to $46.08 billion last month from a surplus of $42.77 billion in June. Exports are anticipated to have climbed 10.9% in July from a year earlier, after having jumped 11.3% a month ago, while imports are expected to rise 16.6%, following an increase of 17.2% in June.

After that, China is scheduled to publish data on July consumer and producer price inflation on Wednesday. The reports are forecast to show consumer prices rose 1.5% last month, while producer prices are expected to rise 5.5%.

Turning to the British Pound, the currency was also lower against the dollar, sending the pair GBP/USD down 0.73% to 1.3042 on Friday. The Office for National Statistics is to produce data on U.K. manufacturing production for June on Thursday. Analysts expect for a flat reading, after a decline of 0.2% in the preceding month. Industrial output is anticipated to inch up 0.1%, following a fall of 0.1% in May.

The Organization of Petroleum Exporting Counties will publish its monthly assessment of oil markets on Thursday while the International Energy Agency will release its own monthly report on global oil supply and demand on Friday. A meeting of oil ministers from some OPEC and non-OPEC countries set for Monday and Tuesday in Abu Dhabi will also draw market attention.

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