Concerns over trade tensions between the United States and China continue, especially with the US Treasury Department announcing its intention to impose restrictions on Chinese companies' investment in US technology companies. The $ 34 billion tariff on Chinese goods is also due to begin on July 6.
There will also be a summit of European Union leaders and Brexit will be at the top of the agenda to be discussed at the conference table.
Highlights of the week's economic events & data:
Wednesday - New Zealand interest rate decision
The Reserve Bank of New Zealand is expected to keep interest rates unchanged at 1.75% and forecasts are expected to remain unchanged until the first quarter of next year. Adrian Orr, governor of the New Zealand Reserve, may point to concerns about global trade tensions.
Thursday - US Growth Data
The final reading of US gross domestic product is due to release for Q1 of 2018. The US economy is expected to grow by 2.2%, unchanged from the initial reading, after the economy grew by 2.9% in the last quarter of 2017. The current expansion period of the economy is the second largest growth period in the United States.
Friday - British growth data / inflation data in Europe and United States
The UK GDP is expected to grow by 1.3% in Q1 of 2018 against the fourth quarter of 2017 which economy grew by 1.4%, the weakest performance since mid of 2012.
In the euro area, inflation data are due to release for June and the annual consumer price index is expected to rise by 2%, while core CPI will rise by 1%. The European Central Bank is targeting inflation near 2%.
In the US, core personal consumption expenditure numbers will be released, the preferred measure of inflation for the Fed, are expected to rise by 1.8% in May, the same as in April.
