(Reuters) – The big news on U.S. monetary policy and the Democratic Party, economic indicators and Japanese inflation figures will drive markets in the coming days.

Overview of the market outlook for the coming days:

1/ JACKSON HOLE

Central bankers from around the world will gather in Jackson Hole, Wyoming, starting Thursday for the Federal Reserve’s annual conference, which this year focuses on labor markets.

Fed Chairman Jerome Powell will have the opportunity to clarify his view of the US economy and his positioning for the September meeting, during which the central bank is expected to lower its rates by 25 basis points, according to operators.

The size and pace of future rate cuts are now the main questions on investors’ minds, with some still betting on a 50 basis point cut after weak employment figures in July.

2/ PMI

The PMI indicators expected in the coming days will help investors clarify the global economic outlook, in a context of slowing private sector activity and inflation still above central bank targets.

In July, US manufacturing activity weakened, while German figures were surprisingly weak, suggesting a contraction in Europe’s largest economy. However, input prices in the manufacturing sector hit an 18-month high, raising concerns that inflationary pressures are persisting.

If the indicators for August, most of which will be published on Thursday, confirm the trend of the July figures, central banks may have to cut rates more slowly than hoped.

3/ JAPAN

Japanese policymakers have warned that the Bank of Japan’s rate hike, which sent the yen rallying against the dollar and sent Japanese indexes down at the fastest pace since Black Monday in 1987, will not be the last.

Next Friday, members of the central bank’s monetary policy committee, including its governor, Kazuo Ueda, will have to answer questions from Japanese lawmakers.

The same day, consumer prices will be published, while the latest indicators published show a stronger than expected rebound in growth and consumer spending, supporting the restrictive discourse of the Bank of Japan.

4/ DEMOCRAT CONVENTION

The Democratic Party convention will begin on Monday in Chicago for four days, and should allow Kamala Harris, American vice president and Democratic candidate for the November presidential election, to clarify certain points of her program.

Unlike Republican candidate Donald Trump, Kamala Harris has repeatedly stressed her commitment to the independence of the Federal Reserve.

The gap between Donald Trump and Kamala Harris has narrowed in recent weeks, with several polls showing the Democratic candidate as the winner on November 5.

5/ OIL

Crude oil prices have been hesitant, with a combination of factors influencing the price of a barrel in recent weeks. Concerns about the situation in the Middle East, which could limit local oil production, have pushed Brent prices to more than $80.

However, gains are capped by concerns about global demand, with China in particular worrying investors.

(Graphs Pasit Kongkunakornkul, Sumanta Sen, Vineet Sachdev; compiled by Karin Strohecker, Corentin Chappron)

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