Investors in the US will turn their attention to the preliminary Markit PMI survey for July, with forecasts suggesting the private sector activity growth slowed for a second straight month from May's record high. A weaker-than-expected reading would add to signs that the global recovery may have reached a peak and could start to moderate going forward. Other notable publications include building permits and housing starts, existing home sales, Chicago Fed National Activity Index, and NAHB Housing Market Index.
On the corporate front, the second-quarter earnings season continues, with reports to watch including those from IBM, Netflix, Intel Corp, Twitter, Snap, Johnson & Johnson, Coca-Cola Co, Philip Morris International, American Express, Verizon Communications, AT&T and Schlumberger.
Elsewhere in America, important data to follow include Canada retail sales and new house prices, as well as Mexico and Brazil mid-month inflation rates and Argentina trade balance and economic activity.
Across the Atlantic, Britain’s economic calendar is packed with key updates on retail trade, consumer morale, and the CBI gauges for factory orders and business confidence. In addition, flash Markit PMI figures for July will probably show solid increases in both manufacturing output and services activity as the economy continues its reopening efforts.
Elsewhere in Europe, the European Central Bank will update its guidance on monetary stimulus when it meets on Thursday. The bloc's central bank is expected to stick with an ultra-easy monetary policy stance after announcing last week a strategy review that will see policymakers targeting inflation at 2%, and even allow it to run higher that level for a brief period. Flash Markit PMI figures for the Eurozone, Germany and France will also be in the spotlight, with forecasts suggesting the bloc’s services growth accelerated further from June's 14-year high, while manufacturing expansion should remain strong overall. Traders also await the release of the Euro Area flash consumer confidence and construction output; Germany producer prices; France business survey; and Turkey consumer confidence. Russia's central bank is seen hiking interest rates by 50bps when it meets on Friday.
In Asia-Pacific, the People's Bank of China will provide an update on its new loan prime rate (LPR) on Tuesday, which was kept steady at 3.85 percent last month; while in Japan, key economic data to follow include trade balance and inflation rate.
Investors in Australia will be following retail sales and flash Markit PMIs; while New Zealand is releasing Services NZ PSI. Other highlights include: Hong Kong unemployment and inflation rate; Taiwan export orders, jobless rate and industrial output; Thailand trade balance; Singapore and Malaysia consumer prices. Indonesia's central bank will also be deciding on interest rates.
Finally, the South African Reserve Bank will probably hold interest rates at current levels, amid a falling rand as the country faces its worst unrest in decades.