U.S. Survey results:
U.S. Survey results: geopolitical risks are back at the forefront with Turkey now in the spotlight. The U.S. sanctions and the collapse in TRY are adding ongoing concerns over tariffs and trade, with the threat of contagion and spillover to peripheral markets in the Eurozone. Italy’s MIB closed with a 2.5% drop, while the DAX declined 1.99%. Uncertainties will remain high near term and may overshadow a very heavy slate of data next week that includes retail sales, manufacturing, production and housing numbers, with most reports on Wednesday and Thursday. So far U.S. macro data has remained solid after a 4.1% GDP growth rate in Q2, with no real effects on growth or prices, and that looks to be the case for upcoming July and August data. The Medan Survey estimates on retail sales show a headline gain of 0.2% for July, with the ex-auto component rising 0.4%. Industrial production should increase 0.3% in July, while the Empire State and Philly Fed index are expected to remain robust, but with activity slowing a bit in August.