Week ahead: Eurozone inflation, PMIs and FOMC minutes

As we approach the end of August, markets are gearing up for a week filled with several key releases, such as the final Eurozone inflation reading for July, FOMC meeting minutes, UK, US, and Eurozone PMIs, as well as the weekly jobless claims reading from the US Department of Labor.

The end of the week will see the start of the Jackson Hole symposium, where all eyes will be on Federal Reserve Chair Jay Powell for cues as to the US central bank’s actions in September, with markets currently firmly betting on an interest rate cut.

Here are the week’s key events:

Monday, August 19th: Palo Alto Networks Earnings Report

As with last week, Monday will be fairly tame in terms of economic data, with releases such as the consumer confidence survey in South Korea and New Zealand trade balance eyed for later in the day. Markets will be processing last week’s US CPI report ahead of the FOMC minutes and Jackson Hole Symposium.

On Wall Street, investors will be looking at the earnings report from California-based cybersecurity firm Palo Alto Networks. Particular focus will likely be paid to the company’s full-year 2025 guidance and potential updates on the effects of the CrowdStrike outage.

Earnings: Palo Alto Networks (PANW)

Tuesday, August 20th: Eurozone inflation, Canada CPI

The Eurozone inflation report for July is due out today — it will be closely watched as investors and policymakers assess the region's economic outlook amidst ongoing inflationary pressures. A flash reading from Eurostat on July 31 showed that inflation had edged up to 2.6% from 2.5% in June, although that did not seem to derail market expectations for an interest rate cut by the European Central Bank in September.

The ECB started cutting rates in June, paused in July and is widely expected to slowly dial back some of the steepest hikes it has made in its 25-year history over the next year.

Like the Eurozone, Canada’s inflation report will be key for the Bank of Canada’s rate-setting decisions, as inflation remains a central concern globally.

Earnings: Lowe’s Companies (LOW)

Wednesday, August 21st: FOMC Meeting Minutes

Markets will be looking for interest rate cues from the Federal Reserve as the minutes of the latest Federal Open Markets Committee (FOMC) are released. The U.S. inflation rate, as measured by the Consumer Price Index (CPI), eased to 2.9% year-over-year in July, down slightly from 3% in June, according to the U.S. Bureau of Labor Statistics (BLS) last Wednesday. This result was in line with market expectations.

The annual core CPI, which excludes volatile food and energy prices, increased by 3.2%, following a 3.3% rise in June, also meeting analysts' estimates. On a monthly basis, both the headline CPI and core CPI rose by 0.2%. Provided there are no surprise readings in the next few weeks, the Federal Reserve appears to have laid the groundwork for an interest rate cut in September, placing it behind peers such as the European Central Bank, Bank of England, and Bank of Canada, who have all cut rates this year.

Crude oil data stocks and production data from the US Energy Information Administration (EIA) is also due today, which will be key for oil prices as they remain elevated over potential escalations in the Middle East.

Earnings: TJX Companies (TJX), Analog Devices (ADI), Synopsys (SNPS), Target (TGT)

Thursday, August 22nd: UK, US, Eurozone PMIs and Initial Jobless Claims

Markets will be focused on the Purchasing Managers Index (PMI) in the US, UK, and Eurozone today, as well as the weekly initial jobless claims data.

New unemployment claims in the US dropped more than anticipated last week, easing concerns about an unravelling labor market and indicating that the gradual softening remains on track.

The US Labor Department reported last Thursday that initial claims for state unemployment benefits fell by 17,000 to a seasonally adjusted 233,000 for the week ending August 3, marking the largest decline in nearly 11 months.

Friday, August 23rd: Jackson Hole Symposium

The annual Jackson Hole Symposium kicks off, with central bankers from around the world gathering to discuss monetary policy. Fed Chair Jerome Powell’s speech will be the highlight, with markets keen on any hints about the future path of U.S. interest rates.