The UK’s April-June GDP flash estimate and the US core PPI are due to be released in succession, while the Bank of Japan plans to conduct a bond-purchase operation, with its impact on long-term interest rates becoming a market focus. Market attention will center on the performance of key UK and US indicators and the BOJ operation as investors assess the outlook for risk assets in financial markets.
On the 13th, the market was awaiting the release later that day of the UK’s April-June GDP flash estimate and the US core producer price index (PPI), while major statistics from Japan, the US and Europe were released in succession. In the domestic market, the Bank of Japan plans to conduct a bond-purchase operation, which could affect the direction of long-term interest rates.
In Japan, the July domestic corporate goods price index will be released at 8:50 a.m., with the market consensus pointing to a 7.3% year-on-year increase, accelerating from the previous 7.1%. Higher corporate goods prices could affect monetary policy through their pass-through to consumer prices.
The BOJ’s bond-purchase operation is scheduled to target 3 maturity zones: 3-5 years remaining, 5-10 years remaining, and more than 25 years remaining. The results are seen as a factor that could influence super-long-term interest rates. There is also speculation that volatility in the government bond market has increased following the announcement of the operation.
Overseas, the UK’s GDP flash estimate and industrial production will be released in the afternoon. GDP is forecast to rise 1.1% quarter on quarter, while industrial production is expected to decline 0.3% month on month. In Europe, June industrial production is expected to rise 0.2% month on month, while the US is scheduled to release initial jobless claims and the core PPI.