Global Economy Week Ahead: EU Confidence, U.S. Home Sales, Brazil Rate Decision

Wall Street Journal, 07/07/2016

This week, investors will be watching for post-Brexit fallout in the U.K. and Europe as data reveals how the vote is affecting the regional economy. Also, the European Central Bank will make its first policy decision since the U.K.’s vote, Brazil’s central bank may send signals on a prospective rate cut later this year, and U.S. housing-market data should offer clues to whether the American economy is gathering pace.

WEDNESDAY: The European Commission’s preliminary measure of consumer confidence for July in both the eurozone and the European Union as a whole should provide evidence of how the U.K.’s Brexit vote might affect the Continent’s economic outlook. The index is expected to show a weakening of sentiment, hinting at slower growth in consumer spending over coming months, with economists forecasting a fall to minus 8 from minus 7.3 in June. In Brazil, the central bank is largely expected to hold its 14.25% Selic benchmark rate steady, but investors will be listening for indications for when officials might cut borrowing costs as the country struggles to pull out of a recession.

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