Guardian Weekly Market Report – Issue 132

Reports of Note Due This Week

Friday’s inflation data from the Personal Consumption Expenditures Index or PCE will be the most important indicator this week. There are a few more including durable goods, Case-Shiller home price index, consumer confidence and Initial Jobless claims.

• Monday, Aug 26- At 8:30 A.M. we get the release of Durable Goods.
• Tuesday Aug 27 – At 9:00 A.M. sees the S&P Case-Shiller home price index for June and then at 10:00 A.M. comes consumer confidence for August.
• Wednesday Aug 28 – None scheduled.
• Thursday August 29 – Weekly Initial Jobless Claims at 8:30 AM. They are expected to be slightly higher at 234,000 versus last weeks 232,000. Also out will be pending home sale and , Advance wholesale and retail inventories for July.
• Friday August 30 – 8:30 A.M. sees the release of the Personal Consumption Expenditures (PCE) Index for July along with personal Income and spending. Then at 9:45 A.M. we receive the Chicago Business Barometer for August followed at 10:00 by Consumer Confidence.

Geopolitics

Russia launched a significant drone and missile attack on Ukraine, hitting multiple regions including Kyiv, Lutsk, Dnipropetrovsk, and Zaporizhzhia. The assault, which began around midnight and continued into the morning, targeted energy infrastructure, causing disruptions in power and water supplies. The attacks resulted in at least three fatalities across different regions and sparked emergency measures, including blackouts by Ukraine’s energy company DTEK. Polish and NATO air defenses were also activated in eastern Poland in response.

Here in Canada, the government intervened to resolve a labor dispute between the country’s major railroads and their union by mandating arbitration, aiming to restart train operations disrupted by a lockout. This decision, enforced to mitigate potential economic impacts, was met with criticism from the union, which accused the railroads of creating a crisis to provoke government action. The move is expected to swiftly resume rail services, crucial for both domestic needs and U.S. supply chains, emphasizing the essential role railways play in national and North American economic stability.

Indian Prime Minister Narendra Modi visited Kyiv to meet Ukrainian President Volodymyr Zelenskyy, marking a significant diplomatic event amid the ongoing conflict with Russia. Modi urged for immediate peace talks between Ukraine and Russia, offering India’s assistance as a mediator. He emphasized the necessity of dialogue and diplomacy to resolve the crisis. This visit is particularly noteworthy as it represents the first by an Indian prime minister to Ukraine in modern times, highlighting India’s potential role in facilitating peace discussions.

In Botswana, an extraordinary 2,492-carat diamond, the largest discovered in over a century and the second-largest ever found in a mine, was unveiled. Botswana’s President Mokgweetsi Masisi presented the diamond, highlighting its significance and the pride it brings to the nation. The diamond, recovered by the Canadian mining company Lucara Diamond Corp. from the Karowe Mine, is a high-quality stone found using advanced X-ray technology. This historic find underscores Botswana’s status as a major diamond producer.