Tokyo 2020 Olympics has successfully opened. As we watch the first Olympic Games without crowds, Japan’s economic activity has released some unpromising data. In July, Japan’s factory activity expanded at the slowest pace in the past five months. The Manufacturing PMI slipped to 52.2 from the previous 52.4. Both output and new orders have dropped to the six-month lows primarily due to delays in sourcing raw materials.
This week, investors are also eyeing the Fed’s meeting which will be held on Wednesday. Last month, the Fed has surprised the market with the debate on cutting down its monthly purchasing program on Treasuries and mortgage-backed securities. Most analysts are expecting the Fed to give out a clearer plan on the timing and scale. Moreover, on Thursday, we will have the US Q2 GDP in focus. Currently, the expectation is at an annualized 8.6%.