China is due to set the opening tone for the week with the publication of preliminary PMI Manufacturing data for March, this figure has been soft lately reflecting the general slowdown in the Chinese economy. World markets will be happy to wake up Monday morning to even a slight uptick in the world’s second largest economy.
Also in Asia, Thursday will be a big day for Japan, a chance to get an update on the current economic recovery attempt. Inflation, Unemployment and Retail Sales figures are due for the previous month. The first two of these, Inflation and Unemployment are perhaps the only two of Japan’s main metrics that are currently performing, it is vital if Japan has any chance of recovering from it’s debt crises that these two indicators remain in check, watch for either of these rising as a sign of upcoming trouble for Japanese authorities. Retail Sales on the other hand is not typically a top tier indicator, however this will be the last reading before the large sales tax increase that comes into effect next week and as such it would be expected to show a measurable, albeit temporary, increase as consumers effect purchase ahead of the April price rises.
Elsewhere during the week the British Pound will have two chances to recover some of ground it gave up over the last fortnight. UK Inflation data is due on Tuesday morning, by all measures the British economy has had a positive and robust first quarter so it would be surprising not to notice an inflationary uptick over the coming months. Should Friday’s British GDP data also register higher this will increase pressure on the Bank of England to tighten up on monetary policy.
Finally, Germany’s Inflation data on Friday will also be one to watch this week. Typically higher than the Eurozone as a whole it is the German component of the single currency’s price index that is keeping EU prices just above the deflationary danger zone. Any slippage in this German number is unlikely to be made up elsewhere within the Eurozone and as such Friday’s German CPI data will be taken as an important proxy for the health of the overall EU bloc recovery.
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