27 July 2026
A busy week for markets lies ahead, with key central bank meetings including the Fed (Wed), BoE (Thu) and BoJ (Fri). We also have the release of the US Core PCE inflation index and another wave of major corporate earnings.
Today’s calendar features Germany’s IFO Business Climate Survey, US durable goods orders and the Dallas Fed Manufacturing Index. Tuesday brings US wholesale inventories and Conference Board consumer confidence. Earnings from Boeing and Barclays are also due. Attention then turns to Wednesday’s FOMC meeting, where policymakers are widely expected to leave interest rates unchanged, followed by Fed Chair Warsh’s presser. Earnings from Microsoft, Meta and SK Hynix will also be closely watched for further insight into AI investment trends.
Thursday sees eurozone employment and consumer confidence data, while BoE is also expected to keep rates on hold. Governor Bailey’s press conference will be scrutinised for clues on the policy outlook. US personal income and spending, the Core PCE Price Index – the Fed’s preferred inflation measure – and initial jobless claims are also scheduled. Earnings from Apple, Amazon and Samsung round out another busy session. The week concludes with the BoJ’s policy decision, China’s manufacturing and non-manufacturing PMIs, eurozone CPI, and US releases including the employment cost index, University of Michigan consumer sentiment and the MNI Chicago PMI.
Global markets were driven last week by a combination of escalating geopolitical tensions in the Middle East and growing investor scrutiny of the enormous capital spending commitments underpinning the artificial intelligence boom. The S&P 500 declined 1.3%, extending its losing streak to five consecutive weeks. Rising tensions involving the US and Iran, together with shipping disruptions, reignited concerns over global energy supplies. Brent crude climbed almost 10% to around US$97pb, fuelling renewed inflation concerns and pushing sovereign bond yields higher. The 10-year US Treasury yield rose to 4.68%.
The start of high-profile megacap technology earnings, highlighted by heavy spending targets and mixed profitability, triggered a rotation out of mega-cap growth names into defensive and cyclical sectors. Sentiment was further constrained by expanding US tariff measures and lingering uncertainty over the macroeconomic growth trajectory. The dollar remained near multi-months highs, up 0.70% over the week.
US macroeconomic releases were relatively light, featuring routine high-frequency updates such as preliminary flash PMIs and weekly initial jobless claims. In the absence of heavy top-tier economic releases, investors channelled their focus toward quarterly corporate earnings and energy-driven inflation dynamics, recalibrating expectations for the Fed’s upcoming policy meeting.
In China, the People’s Bank of China left both the one-year and five-year Loan Prime Rates unchanged at 3.0% and 3.5%, respectively, signalling a pause in monetary easing as policymakers balanced domestic economic weakness against elevated global inflation risks. Meanwhile, economic indicators continued to paint a mixed picture, with persistent softness in the property sector and consumer demand offset by modest improvements in industrial activity. The PBOC also maintained tight control over the renminbi through its daily fixing mechanism, prioritising exchange rate stability amid heightened global market volatility and renewed international scrutiny of China’s currency management policies.