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The Week Ahead: The Xi-Trump Showdown

The last Singapore quarterly-earnings season of 2018 has come and gone. But the reporting season has merely been a warm-up act for main event of the year, the showdown between President Xi Jinping of China and President Trump of the US.

The leaders of the two largest global economies are set to talk on the side-lines of the G20 meeting in Argentina on 1 December. A capitulation by either party seems unlikely, given the egos of the two presidents. A truce, however, could be welcomed by the markets.

Staying with China, a couple of key Purchasing Managers’ indices could provide some pointers as to impact that the trade dispute has had on its economy. Manufacturing PMI’s are still expected to show that the sector has not quite contracted. The services sector is still expanding albeit at a weaker pace.

The Bank of Japan has targetted an inflation rate of 2%. But so far, consumer prices have risen at a rate below that. In October, the Consumer Prices Index was 1.5%, whilst core CPI was 1%.

Indonesia will also report inflation numbers for November, which is forecast to show a small increase from the previous month. In October, the inflation rate of 3.16% was driven by housing & utilities, clothing and financial services.

India will report GDP figures for the third quarter. This is expected to show a slight slowdown from 8.2% in the second quarter to 7.4% this time. Between April and June, India posted the strongest growth rate since the first quarter of 2016.

And finally, it’s time for those Singapore bank lending figures for October. So, look out for reactions from DBS Group (SGX: D05), OCBC (SGX: O39) and UOB (SGX: U11). Bank lending is expected to have inched up from S$669.5 billion in September to S$670.9 billion last month.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.The Motley Fool Singapore has recommendations for UOB, DBS Group and OCBC. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.