Global financial markets are heading into a crucial week packed with major economic data releases, central bank decisions, and corporate earnings that could shape expectations for interest rates and global growth. Investors will closely track inflation, business activity, labour market, and trade data across major economies, while ongoing US-Iran tensions continue to influence energy prices and market sentiment. The week's releases are expected to provide fresh insights into the health of the global economy and the future policy direction of leading central banks.

US: In the US, attention will centre on the July S&P Global Manufacturing and Services PMIs, the Conference Board's Leading Economic Index, new home sales, and regional Federal Reserve manufacturing surveys for clues on economic momentum ahead of the Federal Reserve's policy meeting. Markets will also monitor second-quarter earnings from major companies, including Alphabet, Tesla, Intel, Exxon Mobil, IBM, General Motors, and American Express. In Canada, investors will assess June inflation, retail sales, and new housing price data, while Mexico will release mid-month inflation figures.

Europe: The European Central Bank's monetary policy decision will be the week's biggest event, with policymakers widely expected to leave interest rates unchanged. Investors will focus on the ECB's guidance for the remainder of the year for signals on future rate moves. The UK will release key inflation, unemployment, wage growth, and retail sales figures, offering a fresh assessment of domestic economic conditions. Across the Eurozone, flash PMI surveys, Germany's ZEW Economic Sentiment Index, producer prices, construction output, and consumer confidence data will provide further insight into business activity and economic resilience. Markets will also watch monetary policy decisions from Russia, Hungary, and Turkey.

Asia-Pacific: In Asia, China's People's Bank of China is expected to keep its one-year and five-year Loan Prime Rates unchanged. Japan will publish trade balance, export-import, and CPI data, alongside preliminary PMI readings, providing an update on inflation and external demand. Investors will also monitor South Korea's second-quarter GDP, Australia's employment report and PMI data, and inflation and trade releases from New Zealand, Singapore, Hong Kong, Malaysia, and Thailand. Meanwhile, Bank Indonesia's monetary policy decision will also remain on investors' radar as markets assess the region's economic outlook.

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