What to Watch in the Day Ahead - Tuesday, Sept 1
(The Day Ahead is an email and PDF publication that includes the day's major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at . Thomson One users can register at RT/DAY/US. All times in ET/GMT) The pace of growth in the U.S. manufacturing sector is expected to slow a bit compared with the previous month's figure. The Institute for Supply Management's index of national factory activity is expected to fall to 52.6 in August from 52.7 in July. (1000/1400) Financial data firm Markit is also due to release its final U.S. Manufacturing Purchasing Managers' Index for August. (0945/1345) Separately, data released by major automakers is expected to show U.S. auto sales declined to 17.30 million vehicles in August from 17.55 million in July. Meanwhile, construction spending is expected to have accelerated by 0.6 percent in July, having registered its smallest rise of 0.1 percent since January in June. (1000/1400) Discount retailer Dollar Tree Inc is expected to report a second-quarter profit slightly below the average analyst estimate, according to Thomson Reuters StarMine. The company dethroned Dollar General as the top U.S. discount retailer by store count after it won a takeover battle for rival Family Dollar Stores Inc. With the deal closing in July, analysts are looking for any revision in the company's full-year forecast. Analysts say Dollar Tree has a lot of work to do to bring the Family Dollar business up to par and this may cause disruption in both entities. Federal Reserve Bank of Boston President Eric Rosengren speaks on the economic outlook before the Forecasters Club of New York. (1310 /1710) Statistics Canada releases gross domestic product data for the second quarter. Canada's economy is forecast to have contracted at a 1.0 percent annualized rate in the second quarter, putting the country into recession as it struggles with the impact of cheaper oil prices. Analysts will also focus on the GDP reading for June, which is expected to show the economy grew 0.2 percent in the month, breaking a five-month downturn. A positive reading for June could provide a silver lining as it would suggest Canada's economy started picking up at the end of the second quarter, strengthening expectations that the recession was only a brief one. (0830/1230) The RBC Canadian Manufacturing Purchasing Managers' index, a measure of manufacturing business conditions, will also be released. (0930/1330) Brazil's central bank holds a two-day monetary policy committee meeting. The country is expected to show a trade surplus of $2.9 billion for August. Separately, Mexico's manufacturing sector sentiment is on the economic calendar. (0100/0500) Meanwhile, consumer prices in Peru are expected to have risen 0.30 percent in August, slower than the 0.45 percent rise seen in July. (0100/0500) Peru cut its growth forecasts for 2015 and 2016 and warned of further "negative shocks" to the mining-powered economy, citing fears of an abrupt slowdown in China and the likelihood of an interest rate hike in the United States. (Compiled by Nayyar Rasheed in Bengaluru; Editing by Kirti Pandey)
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