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© Reuters. Investing.com – Oil prices will react to the opening of markets after the attack of a major Saudi production facility, in a climate of uncertainty as to the volumes of supply likely to be disrupted. Investors are also gearing up for further Fed interest rate cuts this week, as well as a series of rate decisions by other central banks around the world.
Here's what you need to know to start your week.
- Oil is expected to jump after the Saudi attack
Saturday's attacks on major processing plants in Saudi Arabia will test the world's ability to cope with a supply crisis as the country faces a temporary loss of supply. More than 5% of the world's largest exporter's global supply.
The United States has accused Iran of the attack, which would reduce Saudi production by about 5.7 million barrels per day (bpd), or more than half of the kingdom's production, according to a statement by the United States. Saudi Arabia Aramco.
Crude oil prices could rise by several dollars a barrel when markets open Sunday night, a prolonged outage that may prompt the United States and other countries to free up crude oil from their strategic oil reserves to boost commercial inventories. global scale.
"Prices will jump on this attack, and if the disruption in Saudi production is prolonged, an SPR (…) release seems likely and reasonable," said Jason Bordoff, founding director of Columbia University's Center on Global Energy Policy. At New York.
- The Fed is ready to cut rates again
It is generally expected that the Fed will come back down after its two-day political meeting Wednesday, to offset the risks to the US economy of trade tensions between Beijing and Washington , Brexit and a vast global slowdown.
Investors are forecasting a quarter-point rate cut, according to Investing.com. The Fed lowered rates for the first time in more than a decade in July.
"We believe that the Fed will once again vote in favor of a 25bp rate cut, which will be described as an insurance movement against the headwinds that weigh on the economy," have written ING analysts in a note. "In addition, a Fed rate cut will help ease the upward pressure on the US dollar, given the loosening of the ECB's policy."
- "Thursday Super" from the central bank
Thursday will see political meetings in Japan, the UK, Norway and Switzerland following Wednesday's Fed decision and the European Central Bank's last week's stimulus package.
The Bank of Japan is expected to remain unchanged unless the Fed's decision upsets the markets and provokes a spike in the market.
Switzerland, with -0.75%, is so far silent on the prospect of imitating a relaxation of the ECB but will be concerned by the soaring franc at a high of two years compared to at.
It is not supposed to make changes, but its tariff statement will be closely monitored in the event of a problem with the economic benefits of Brexit.
The central bank could still increase, but with increasing easing, it is likely to mark the end of its tightening cycle.
- Commercial hopes
Subordinate US and Chinese officials will meet in the coming week ahead of scheduled talks between major trade negotiators in early October and investors will be on the lookout for any sign that relations between the two parties are deteriorating.
Beijing has exempted some agricultural products from additional tariffs on US products and President Donald Trump has postponed by two weeks the increase in tariffs on some Chinese products.
The economic data released Monday by China, including reports on, will provide a better understanding of how the world's second-largest economy is doing in the context of the long-running trade war.
- Economic data, revenues
The economic calendar will provide an update on the health of the US housing market, with reports on and. Global shipping giant FedEx (NYSE :), considered a mainstay of the US economy, is due to report on Tuesday.
In the eurozone, a report on the German index released on Tuesday will shed some light on whether the bloc's largest economy is about to face a recession after a slight contraction in the second quarter.
The United Kingdom must publish data on the United Kingdom, while Canada must report on it.
– Reuters contributed to this report
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