Economic calendar: US CPI data and BoC rate decision in focus

• European indices set for lower opening

• US CPI expected to accelerate again

• Bank of Canada set for 75 bp rate hike

Futures markets point to a lower opening of the European cash session today. In spite of upbeat moods seen on the stock exchanges in Asia-Pacific region, indices from the Old Continent are seen opening lower today. Markets calmed somewhat and the range of moves is rather narrow this morning. However, traders should keep in mind that things can change later into the day.

There are 2 big events to watch today. The first one - release of US CPI data for June - will be closely watched as continued acceleration in price growth (as expected) will give Fed more courage to tighten policy quickly. The second event to watch is the Bank of Canada rate decision. A 75 basis point rate move is expected, mimicking recent actions of Fed. 

8:00 am BST - Spain, CPI inflation for June. Expected: 10.2% YoY. Previous: 8.7% YoY

10:00 am BST - Eurozone, industrial production for May. Expected: 0.2% MoM. Previous: 0.4% MoM

1:30 pm BST - US, CPI inflation for June.

• Headline. Expected: 8.8% YoY. Previous: 8.6% YoY

• Core. Expected: 5.7% YoY. Previous: 6.0% YoY

3:00 pm BST - Bank of Canada rate decision

3:30 pm BST - US, DOE report on oil inventories.

• Oil inventories. Expected: -0.1 mb (API: +4.76 mb)

• Gasoline inventories. Expected: -0.3 mb (API: +2.93 mb)

• Distillate inventories. Expected: +1.5 mb (API: +3.26 mb)

Central bankers' speeches

• 4:00 pm BST - BoC Governor Macklem (post-meeting press conference)

Wall Street earnings releases

• Delta Air Lines (DAL.US) - before market open

• Fastenal (FAST.US) - before market open