What Economic Indicators Should Investors Watch This Week?
There are several important economic indicators investors should keep an eye on this week:
- the Eurozone (EZU) (VGK) ZEW Economic Sentiment Index
- the Germany (EWG) ZEW Economic Sentiment Index
- UK (EWU) retail sales
- the Eurozone (HEDJ) Consumer Price Index
- Eurozone (IEV) consumer confidence
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Performance of ACWI
We can get an idea of the condition of the global market by looking at the performance of the iShares MSCI All Country World Index ETF (ACWI). The performance of this ETF depends on the performances of the above-mentioned global indicators. It’s important for investors to track the performances of these indicators to identify trends in the global market.
The most important indicators for this week are Eurozone consumer confidence, Eurozone inflation, and UK retail sales. Eurozone inflation affects the ECB’s monetary policy decisions. In June 2017, the ECB (or European Commercial Bank) hinted at a hawkish stance for the near future.
If the inflation index is strong, then we might see a gradual rate hike process in Europe. The Fed already started its gradual rate hike process in the US in December 2015. Now other major central banks such as the ECB, Bank of England, and the Bank of Canada are planning to move in this direction. Read, Ray Dalio to Investors: ‘Keep Dancing but Closer to the Exit’ to learn more about the central banks’ decisions.
You may also be interested to read, Weekly Economic Indicators: Sales, Sentiments, and Confidence.