The Week Ahead: War Games

With the Singapore earnings season out of the way, it could be time for the market to turn its attention to geopolitical issues.

Next week, the US and South Korea militaries will go ahead with their sea, land and air exercises. The annual joint war games will be carried out at a time when both the US and North Korea are on heightened alert.

On the economic front, the US will report new home sales, which can be an indicator of consumer confidence. In June, 610,000 home were bought, which was below market expectations. The US will also report existing home sales for July, which were also disappointing.

The UK will report revised GDP numbers for the second quarter, which is expected to confirm that the economy is growing less quickly. In the first estimate, the economy grew 1.7% year-on-year, which was down from a growth rate of 2% in the first quarter.

Thailand is also on the hook for GDP numbers. In the first three months of this year, the economy expanded 3.3% from a year earlier, which was slightly stronger than market expectations. Economic growth was driven by a faster rise in private consumption, exports and investments, which helped to offset a slowdown in government spending. .

The central bank of Indonesia will announce its latest interest-rate decision. In July, it left the benchmark rate unchanged at 4.75%. The decision is consistent with the bank’s policy to maintain macroeconomic and financial stability, while encouraging economic recovery.

Malaysia will report July inflation numbers. In June, consumer prices rose 3.6%, which was the lowest inflation rate since January. The below-expectation inflation rate was attributed to a slowdown in the cost of food and non-alcoholic beverages.

And finally, Singapore will report inflation numbers for July. Core inflation is expected to be unchanged at 1.5%. However, the headline inflation rate could rise to 0.9%.

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