The Eurozone and UK PMI data will probably add to the pessimism this week, but the big event will be the speech by Fed Chairman Jerome Powell.

Europe’s PMI Data

On Wednesday, PMI data for the Eurozone and the UK will be released. These statistics may shed light on whether the European Central Bank will raise interest rates again in September and whether the Bank of England decides to implement a significant rate rise.

The PMIs for the Eurozone and the UK have been declining recently due to a stagnant service sector and a decline in manufacturing activity.

Investors will be watching Christine Lagarde, president of the European Central Bank (ECB), as she speaks at Jackson Hole on Friday.

US Stocks

Since there are no significant market-moving factors, investors will be concentrating on Powell's speech on Friday for information on the outlook for interest rates as well as the results from chipmaker Nvidia, which is scheduled to report on Wednesday.

On the back of anticipated development in artificial intelligence, Nvidia has had a remarkable rise, nearly doubling in value year to far.

Last week, Wall Street's three major indexes fell as a string of positive economic reports led investors to scale back their expectations for rate cuts and raised the rates on government bonds.

China Issues

As concerns grow that the unprecedented debt crisis in the country's property sector, which makes up about a quarter of the economy, is beginning to affect its financial system, expectations are growing that China may cut the loan prime rate, which would mean lower mortgage rates, as soon as Monday.

Last week, China unexpectedly cut many important interest rates, but economists think the action has come too late and that far more drastic steps are needed to stop the economy's downward trend.

Crude Oil

Last week, oil prices recorded their first weekly fall since June as rising worries about the prospects for global demand outweighed predictions of a tighter market due to output curbs by OPEC+ mainstays Saudi Arabia and Russia.

As China's property crisis worsened and risk appetite decreased, oil prices were under pressure to decline. The Fed minutes released on Wednesday increased Treasury rates and helped the dollar to a five-week high, which reduced the appeal of commodities to foreign purchasers.

(Sources: investing.com, reuters.com)