This week, global financial markets will be focused on a series of key economic events, especially the interest rate decisions of central banks in the United States, Japan, the United Kingdom, Canada, and other countries, as well as the intensive release of important economic data from Europe and China. These events are not only the focus of investors' attention, but may also provide important clues to the global economic trends.

Federal Reserve interest rate decision: Expectations of rate cuts rise, Powell's statement attracts much attention

This Wednesday (September 17th), the US Federal Open Market Committee (FOMC) will announce its latest interest rate decision. Market expectations are that the Fed will cut rates by 25 basis points, bringing the federal funds rate to a range of 4.00%-4.25%. This expectation stems from recent signs of a cooling US job market, and the Fed hopes to inject vitality into the economy through moderately loose monetary policy. In contrast, the market believes the possibility of a 50 basis point rate cut is extremely remote, representing only minority speculation.

Investors will closely monitor the FOMC statement and Fed Chairman Powell's press conference for guidance on future monetary policy. Markets currently expect the Fed to cut interest rates up to three times this year, and Powell's words could add more certainty or uncertainty to these expectations.

Meanwhile, the US will release a series of key economic data this week, including retail sales, industrial production, housing starts, weekly initial jobless claims, and the Philadelphia Fed manufacturing index. These data will provide the market with more clues about the health of the US economy and may further influence investors' judgment on the Federal Reserve's future policies.

Bank of Japan on hold? Prime Minister's resignation casts a shadow over rate hike prospects

The Bank of Japan will announce its interest rate decision on Friday, with the market generally expecting it to maintain the current rate at 0.5%. Investors will be closely watching the Bank of Japan's monetary policy statement, economic outlook report, and press conference by Governor Kazuo Ueda to gauge whether there will be a rate hike later this year. Notably, the recent resignation of Prime Minister Shigeru Ishiba has significantly reduced market expectations for an October rate hike. Japan will also release August trade and inflation data, which will provide further information on the progress of the country's economic recovery.

The Bank of England prioritizes stability, while inflationary pressure tests the outlook for easing

The Bank of England will announce its interest rate decision on Thursday, with markets expecting it to maintain its target at 4%. According to the London Stock Exchange Group (LSEG), the probability of a no-holds-barred rate is 98%. However, UK inflation hit an 18-month high in July, complicating the possibility of further monetary easing. The Bank of England's monetary policy report and meeting summary will be in sharp focus, with investors hoping for clues about future policy direction. Additionally, the UK will release unemployment data, the Consumer Price Index (CPI), and retail sales data this week, which will shed further light on the health of the UK economy.

The Bank of Canada may resume interest rate cuts, with economic data becoming the key

In Canada, market expectations for the Bank of Canada's interest rate decision on Wednesday are leaning towards a 25 basis point rate cut, bringing it to 2.5%, restarting the easing cycle. This expectation is based on the unexpected rise in the unemployment rate in August and the contraction in second-quarter gross domestic product (GDP), which demonstrate downward pressure on the Canadian economy. Investors believe the probability of a rate cut is as high as 90%. This week, Canada will also release August inflation and retail sales data, which will provide further signals on the strength of the economic recovery.

European data is released intensively, and Lagarde's speech attracts attention

The Eurozone will see the release of a series of important economic data this week, including trade and current account data, industrial production, wage growth, and the final reading of core inflation. Germany will also release its ZEW economic sentiment index and producer price index, which will provide crucial insights into the overall performance of the Eurozone economy. European Central Bank President Christine Lagarde will deliver several speeches this week, and her comments may provide further market guidance on the outlook for Eurozone monetary policy. Furthermore, the Norges Bank will announce its interest rate decision on Thursday, and the market will closely monitor its policy direction.

China's economic data has attracted much attention, with consumption and investment data in the spotlight.

China will release a series of key economic data this Monday, including August's total retail sales of consumer goods, industrial value added, fixed asset investment, unemployment rate, and housing prices. These figures will provide the market with the latest clues about the progress of China's economic recovery. The performance of consumption, industrial production, and investment data will directly influence market judgment on China's economic growth prospects.

Australia and New Zealand: Employment and GDP data attract attention

In the Asia-Pacific region, Australia will release August employment data, and Reserve Bank of Australia Assistant Governor Sarah Hunter will participate in a fireside chat on Tuesday, her remarks may provide market clues about Australia's monetary policy. In New Zealand, this week will release food inflation, second quarter current account, gross domestic product (GDP), and trade data, which will provide a comprehensive perspective on the performance of the New Zealand economy.

Summary: The global economy is in turmoil, how should the market respond?

This week, the flurry of global central bank interest rate decisions and economic data releases will undoubtedly stir financial markets. From the Federal Reserve's expected rate cuts to the Bank of Japan's policy moves, from the UK's response to inflationary pressures to Canada's economic easing, to data from the Eurozone and China, each event could become a key variable influencing market trends. Investors should remain vigilant and closely monitor the details of central bank statements and economic data to grasp the market's pulse.