10 Economic Indicators to Watch for the Coming Week

Inflation and the Portuguese bailout will be the main themes of the week ahead which will bring the main gauges of inflationary pressures from the U.K., the Euro-zone, China and the United States.

In preparation for the new trading week, here is the outlook for the Top 10 spotlight economic events that will move the markets around the globe.

1. GBP- U.K. CPI- Consumer Price Index, the main measure of inflation preferred by the Bank of England, Tues., Apr. 12, 4:30 am, ET.

Inflation in the U.K. is expected to remain stubbornly above the Bank of England’s 3.0% ceiling for another month with consumer prices forecast to increase by 4.4% y/y in March, same as the 4.4% y/y reading in February.

2. EUR- Germany ZEW Economic Sentiment Index, a leading indicator of economic conditions and business expectations in the Euro-zone’s largest economy, Tues., Apr. 12, 5:00 am, ET.

The consensus forecasts are pointing to a decline in the economic sentiment index with a reading of 12.2 compared with 14.1 in the previous month.

3. CAD- Bank of Canada Interest Rate Announcement, Tues., Apr. 12, 9:00 am, ET.

Following the disappointing jobs report, the Bank of Canada would be likely to sit on the sidelines for another month, keeping the benchmark rate unchanged at 1.00% where it has been since September of last year.

4. USD- U.S. Retail Sales, an important gauge of consumer spending measuring the total receipts at retail establishments, Wed., Apr. 13, 8:30 am, ET.

Consumer spending in the U.S. could see a pullback as retail sales rise by 0.6% m/m in March from 1.0% m/m in February, while the core retail sales gauge, which excludes automobile purchases, remains unchanged at 0.7% m/m.

5. USD- U.S. Jobless Claims, an important gauge of employment trends and labor market conditions, Thurs., Apr. 14, 8:30 am, ET.

First-time applications for unemployment benefits are expected to decline for another week to 379K from 382K, approaching the 375K level below which economists estimate that jobless applications would need to fall in order to see a significant decline in unemployment.

6. CNY- China CPI- Consumer Price Index, the main measure of inflation, and GDP- Gross Domestic Product, the main gauge of economic activity and growth, Thurs., Apr. 14, 10:00 pm, ET.

The Chinese government and the PBOC may need to continue their efforts to cool things off in the world’s fastest-growing economy with inflationary pressures forecast to rise by 5.2% y/y in March from 4.9% in February, while economic growth inches lower to 9.5% q/y from a previous reading of 9.8% q/y.

7. EUR- Euro-zone HICP- Harmonized Index of Consumer Prices, the main measure of inflation, Fri., Apr. 15, 5:00 am, ET.

The consumer inflation gauge is forecast to confirm the preliminary flash estimate that inflationary pressures in the Euro-zone rose by 2.6% y/y in April from 2.4% y/y in March, remaining above the European Central Bank’s 2.0% comfort level.

8. USD- U.S. CPI- Consumer Price Index, the main measure of inflation in the world’s largest economy, Fri., Apr. 15, 8:30 am, ET.

Even in the United States, where inflation has been more subdued compared with other major economies, the month-over-month index of consumer prices could register a small increase by 0.6% m/m in March from 0.5% m/m in February.

9. USD- U.S. Industrial Production, the main gauge of industrial activity measuring the output of factories, mines and utilities, Fri., Apr. 15, 9:15 am, ET.

Industrial activity in the U.S. is forecast to recover from the 0.1% m/m drop in February with an increase by 0.5% m/m in March.

10. USD- U.S. Consumer Sentiment, the University of Michigan's monthly survey of 500 households on their financial conditions and outlook of the economy, Fri., Apr. 15, 9:55 am, ET.

Optimism could make a comeback with the U.S. consumer sentiment index expected to register a reading of 68.8 in April, up from 67.5 in the previous month.