This week, investors will be keeping a close eye on central banks’ releases and earnings reports from major companies. In APAC, stocks were mostly higher as expectations for incoming Fed rate cuts helped the region shrug off mixed leads from Wall Street. Meanwhile, US President Trump announced he is considering terminating business with China regarding cooking oil.

Fed Chair Powell recently stated that downside risks to the US jobs market have risen, justifying a potential September interest rate cut. This sentiment was reflected in the DXY currency index, which softened and is now basically flat on the week. The Australian dollar, however, is attempting to make up for recent losses, while the EUR/USD sits at a 1.16 handle.

Looking ahead, key releases include European industrial production figures for August, as well as manufacturing figures from the New York Fed and the Cleveland Fed. The Federal Reserve will also publish its Beige Book, which provides insights into economic conditions across the country. Additionally, there are earnings reports due from major companies such as ASML, Bank of America, Morgan Stanley, Dollar Tree, and Progressive.

In other news, European equity futures indicate a firm cash market open, with the EuroStoxx 50 future up 1.2% after closing with losses of 0.3% on Tuesday. The UK and Germany will also be releasing supply data this week.

Overall, investors are likely to remain cautious in light of these developments, as they await further clarity on the trajectory of interest rates and economic growth. Stay tuned for more updates throughout the week!