Investors will be parsing Federal Reserve Chairman Jerome H. Powell's speech Friday at the Kansas City Fed's Jackson Hole Economic Policy Symposium for hints about future rate hikes. Looking east, the Chinese real estate market will also be in focus in the weeks ahead, with money managers bracing for contagion after embattled real estate development firm China Evergrande Group filed for bankruptcy protection with a U.S. court, and a second property giant, Country Garden Holdings, edges toward default.
The week ahead: Investors hope to dig Jackson Hole; China contagion for real?
- Data for July existing home sales will be released Tuesday, followed by new home sales numbers Wednesday.
- The initial jobless claims report for the week through Aug. 19 drops on Thursday.
- The SEC is scheduled to hold a meeting Wednesday and will vote on the finalization of two rule proposals. One would change the exemptions for when SEC-registered brokers and dealers can forgo membership with the Financial Industry Regulatory Authority, and one would require increased disclosure from private fund advisers and prohibit certain fee arrangements.
- Federal Reserve Chairman Jerome H. Powell on Friday will outline the central bank's economic outlook amid its ongoing rate-hike campaign during a speech at the Kansas City Fed's Jackson Hole Economic Policy Symposium that runs Thursday through Saturday. With inflation elevated, the Fed has raised rates 525 basis points since March 2022, including a quarter-point increase at its last meeting in July.
- Analysts expect China to cut one-year and five-year loan prime rates this week, after the country's central bank cut other key policy rates Aug. 15. In contrast to many other countries, China has been battling deflation and a flagging economy despite reopening its borders earlier this year.
- Money managers are on edge about contagion concerns regarding the Chinese real estate market after China Evergrande Group filed for bankruptcy in the U.S. on Aug. 17, and Country Garden Holdings teeters on the edge of default.