Why do Thursday’s releases matter?

In the UK, the Royal Institute of Chartered Surveyors will publish its house price balance, also for the month of June. The European data calendar will light with only consumer price data for June due out in Finland, Ireland and Sweden.

All eyes on Thursday will focus on the US inflation picture as the Department of Labour is expected to releases wholesale price data for June.

Economists expect a decline in the annual rate of producer prices (PPI) from the 10.8% seen in May to 10.4% last month. Following the previous day’s worse than expected on consumer prices (CPI) for the same month, investors and policymakers would likely be relieved not to see a repeat in the PPI numbers.

On Thursday also, the latest reading of the weekly initial unemployment claims will be released. Last reading showed that there were 235,000 initial jobless claims in the week ending July 2, the weekly data published by the US Department of Labour showed last Thursday.

Furthermore, with the country’s Consumer Price Index now much higher than during the preceding quarter, further loan loss provisions on accounting of rising inflation risks were a possibility.