Market Commentary | The week that was
The annual Jackson Hole Economic Symposium will be held in Kansas City in the US this week. The event allows an open discussion of economic issues, including stock and currency issues facing the economies of the world. All eyes will be on the Chairman of the US Federal Reserve, Jerome Powell, as he will be addressing the key issue of soaring inflation.
Moving to China: It is widely expected that the People's Bank of China (PBOC) will decrease its benchmark lending rates today, 22 August, in an attempt to revive its economy. The Chinese economy has been plagued by a revival in Covid-19 numbers, combined with a zero-Covid policy stance and a crisis in the housing sector. The world’s second-largest economy has grown by only 0.4% YoY in Q2 of 2022, missing forecasts of 1%, while the powerhouse investment banking company, Goldman Sachs, cut its forecast for China’s GDP growth for 2022 to 3% from 3.3%. This marks the third cut by the Wall Street Bank since May this year.
Looking at the week ahead: Locally the focus will be on inflation numbers on Wednesday 24th; and internationally on the Jackson Hole Symposium on the 24th & 25Th.