{"id":12708,"date":"2026-05-18T09:40:38","date_gmt":"2026-05-18T09:40:38","guid":{"rendered":"https:\/\/justmarkets.eu\/?p=12708"},"modified":"2026-05-18T09:40:39","modified_gmt":"2026-05-18T09:40:39","slug":"2026-05-18","status":"publish","type":"post","link":"https:\/\/justmarkets.eu\/it\/analytics\/2026-05-18\/","title":{"rendered":"Week’s main events (May 18 \u2013 May 22)"},"content":{"rendered":"
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Week’s main events (May 18 \u2013 May 22)<\/h1>\n
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Global markets in the coming week will remain focused on developments in the US\u2013Iran conflict, where alternating conciliatory and hardline rhetoric will continue shaping investor sentiment and amplifying volatility across commodity, currency, and equity markets. Any signals regarding the Strait of Hormuz and the outlook for oil supply will have a direct impact on inflation expectations and interest\u2011rate projections in major economies. Additional attention will be drawn to the release of the minutes from the latest Federal Reserve meeting. Among US macro releases, the key data points will be the preliminary PMI business activity indices and housing\u2011price figures. In Europe, investors will monitor the Eurozone PMIs as well as Germany\u2019s Ifo surveys, which will help assess the extent to which elevated energy prices are weighing on regional economic activity. In the United Kingdom, political instability surrounding a potential leadership challenge to Prime Minister Keir Starmer by Andy Burnham will remain in focus, while markets also evaluate inflation, labor\u2011market, and retail\u2011sales data. In Asia, the spotlight will be on China\u2019s industrial production and retail\u2011sales figures, the PBoC\u2019s rate decision, and Japan\u2019s inflation and GDP data, which may influence expectations for the Bank of Japan\u2019s next policy steps.<\/p>\n

Monday, May 18<\/div>\n
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The latest data package from Beijing confirms divergence within the Chinese economy. Industrial Production expanded by a resilient 6.0% year-over-year, propelled by robust green-technology and automotive exports, which continue to provide a solid floor for industrial commodities and copper. In sharp contrast, domestic consumer demand remains deeply stagnant, with Retail Sales ticking up by a mere 1.7% as the ongoing property crisis and a sticky 5.3% Unemployment Rate keep households highly cautious. For global markets, this structural imbalance means Chinese manufacturers are facing a severe margin squeeze \u2013 paying higher prices for imported raw materials due to geopolitical frictions while lacking the pricing power to pass costs onto a reluctant domestic consumer. Without aggressive, consumer-focused stimulus from Beijing, the Offshore yuan (CNH) is likely to remain capped, while equity indices like the Hang Seng (HK50) and China A50 will struggle to sustain a structural rally.<\/p>\n

Main events of the day:<\/div>\n
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  • \u2013 China Industrial Production (m\/m) at 05:00 (GMT+3) – CHA50, HK50 (MED)<\/li>\n
  • \u2013 China Retail Sales (m\/m) at 05:00 (GMT+3) – CHA50, HK50 (MED)<\/li>\n
  • \u2013 China Unemployment Rate (m\/m) at 05:00 (GMT+3) – CHA50, HK50 (MED)<\/li>\n<\/ul>\n
    Tuesday, May 19<\/div>\n
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    During Tuesday\u2019s session, key macroeconomic data will be released, notably Canadian inflation figures and key labor market data from the UK. In Canada, the inflation rate is expected to remain roughly unchanged. Although the Bank of Canada has signaled its intention to ignore temporary spikes in energy prices, a reading exceeding 2.6% year-over-year would increase the likelihood of a rate hike, which would provide support for the Canadian dollar (CAD) against G10 currencies. The UK labor market package will heavily dictate short-term sterling (GBP) momentum. Recent readings have shown a cooling trend with the Claimant Count ticking up to 26.8k, and traders will be laser-focused on whether the Average Earnings Index continues to decelerate or remains stubbornly sticky. This could put even more pressure on the pound, which fell sharply last week due to the rise of the dollar and political uncertainty within Parliament. Concurrently, Japan\u2019s Q1 GDP is expected to edge up to 3.1% y\/y, a print that would give the Bank of Japan (BoJ) further economic justification to pursue rate normalization. <\/p>\n

    Main events of the day:<\/div>\n