Current Economic Events on September 2, 2025: Putin and Xi Jinping's Talks at the SCO Summit, Eurozone CPI, Brazil's GDP, Canada's and the U.S. PMI, as well as Global Company Reports. A Comprehensive Overview for Investors.
Key Events Calendar for September 2 (Moscow Time)
- Meeting between Putin and Xi Jinping – negotiations on the sidelines of the SCO summit in China, expected to discuss energy cooperation.
- 12:00 – Eurozone: Consumer Price Index (CPI, August, preliminary data).
- 15:00 – Brazil: GDP for Q2 2025.
- 16:30 – Canada: Purchasing Managers’ Index (PMI) for August.
- 16:45 – USA: S&P Global Manufacturing PMI for August (final data).
- 17:00 – USA: ISM Manufacturing PMI for August.
Geopolitics: Putin and Xi’s Talks at the SCO Summit
Russian President Vladimir Putin and Chinese President Xi Jinping will hold bilateral discussions during the Shanghai Cooperation Organization (SCO) summit in Tianjin. The primary focus of their meeting will be on expanding energy cooperation between Russia and China. New agreements on the supply of Russian energy resources—primarily natural gas and oil—into the Chinese market are expected to be discussed. Investors are keeping a close watch on these negotiations, as potential deals, such as the "Power of Siberia-2" pipeline project, could strengthen the energy ties between the two countries and mitigate the decline of Russian energy exports to Europe.
The meeting takes place amid a complex geopolitical landscape: Western sanctions are fostering closer ties between Moscow and Beijing. China has already become the largest buyer of Russian oil, and an increase in gas exports to China could support the Russian energy sector. **For energy markets**, any news from the SCO summit may influence price dynamics: closer cooperation between Russia and China in the gas sector could long-term alter the balance of the global gas market.
Eurozone Inflation: Preliminary Data for August
Today at 12:00 Moscow time, preliminary data on consumer inflation (HICP) in the Eurozone for August will be released. It is expected that the annual consumer price index will remain close to the European Central Bank’s target level—the consensus forecast is around 2.1% year-on-year (compared to 2.0% in July). The stabilization of inflation around 2% suggests that the ECB’s previous measures of tightening monetary policy have begun to restrain price growth.
However, the details of the inflation report will be closely monitored. **Core inflation** (excluding energy and food prices) may remain above 2%, reflecting persistent price growth in the services sector and wage increases. Different dynamics are observed in various Eurozone countries: inflation has accelerated in Spain (recorded at 2.7% in July), while in Germany, it hovers just above 2%. If the August CPI exceeds expectations, this is likely to reinforce expectations that the ECB may consider further interest rate hikes in the fall. Conversely, a slowdown in inflation could prompt a pause in the tightening cycle. Investors in Europe will carefully analyze these figures, as they will impact Euro exchange rates, bond yields, and the ECB’s policy at its next meeting.
Brazil's Economy: Slowing GDP Growth in Q2
The report on Brazil’s GDP for Q2 2025 will be released at 15:00 Moscow time. Economists estimate that Latin America’s largest economy significantly slowed down in the spring, with expected growth of around +0.3% quarter-on-quarter, down from a robust +1.4% in Q1. Year-on-year, Brazil’s GDP is projected to have increased by approximately 2.2% (for comparison: +2.9% year-on-year in the previous quarter).
The primary reason for this deceleration is the weakening agricultural boom and the impact of tight monetary policy. Earlier in the year, Brazil's agricultural sector experienced a sharp production surge, but in Q2, this effect waned: agricultural output decreased following a record harvest in the previous quarter. The industrial sector also remains relatively weak due to high interest rates and cautious business sentiment. The Central Bank's Selic rate, which has long been maintained at double-digit levels to combat inflation, limits lending and investment. On the other hand, consumer spending and exports provide some support for growth—government stimuli and sustained external demand (particularly for raw materials) have helped avoid a downturn.
The slowdown of Brazil's economy in the second half of the year has been widely anticipated by analysts. Nevertheless, investors will evaluate the extent of the cooling growth: weaker data could heighten expectations for a potential interest rate cut by Brazil’s central bank to support the economy. Additionally, the impending 2026 elections are pushing authorities towards stimulus measures—observers note the possibility of increased government expenditures, which may offset some of the negative trends in the latter half of the year.
Canada’s Industrial Sector: PMI Indicates Decline
Canada will publish data on the Purchasing Managers’ Index in manufacturing (Manufacturing PMI) for August (scheduled for release at 16:30 Moscow time). Previous months have shown a consistent decline in activity: in July, the index reached only 46.1, remaining significantly below the 50-point threshold separating growth from contraction. Preliminary estimates suggest that the August figure is unlikely to rise significantly above this level, likely keeping the PMI in the 45–47 range, indicating a continued downturn in the Canadian manufacturing sector.
The primary factor putting pressure on Canada’s industry is a reduction in export orders, particularly from its largest trading partner, the U.S. The situation has been exacerbated in recent months by the imposition of new American tariffs on a range of Canadian goods: starting in August, Washington has increased tariffs to 35% on products not covered by previous trade agreements. This has adversely affected exporters and supply chains, forcing Canadian companies to cut back on production volumes, inventories, and even personnel. Reports from managers indicate a decline in new orders and manufacturing employment for the sixth consecutive month.
However, there are some positive signals: cost growth rates are slowing, and inflation of raw materials and components has declined to a multi-year low. This could somewhat alleviate the pressure on manufacturers’ profits. Nevertheless, until trade disputes are resolved and demand from the U.S. recovers, the Canadian industrial sector, as indicated by the PMI, is likely to remain at risk. Investors will be looking for signs of a "bottom" of the downturn or hints of future stabilization in the upcoming PMI release, which is crucial for the Canadian dollar and the Bank of Canada's policy.
USA: PMI Indices Indicate Mixed Dynamics
In the afternoon, market attention will shift to the U.S. manufacturing sector’s activity indices for August. Final data from S&P Global will be released at 16:45 Moscow time, followed by the broader ISM Manufacturing Index at 17:00 Moscow time. Preliminary data from S&P Global surprised market participants: the indicator unexpectedly rose above the critical 50-point level, reaching around 53.3 (compared to 49.8 in July). This indicates that, according to this estimate, the American manufacturing sector returned to growth in August for the first time in the last six months. The improvement is attributed to an increase in new orders and alleviation of supply chain issues; significant contributions have come from rising demand for durable goods and a partial recovery of production activity in the automotive sector.
In contrast, the ISM index, calculated by the Institute for Supply Management in the U.S., is expected to remain below 50 points, although it will show some improvement. In July, the ISM Manufacturing PMI stood at 48.0—marking the fifth consecutive value indicating a contraction in production. It is expected that the August figure may rise closer to 49–50 points. If the ISM index exceeds expectations and approaches the neutral level, it will signal that the downturn in U.S. manufacturing is easing. However, values slightly below 50 still indicate weakness: companies report cautious order volumes and reductions in inventory.
The combination of two PMIs will provide a more comprehensive picture. Discrepancies between S&P Global and ISM indices are not uncommon—it can be attributed to different company samples and methodologies. Investors will analyze both reports for trends: coinciding signs of recovery (growth in new orders, reduction in inventory, improvement in employment) will strengthen hopes that the recession in U.S. manufacturing is nearing its end. This could positively affect the stock market sentiment (especially stocks of industrial companies within the S&P 500) and the dollar's exchange rate. Conversely, continued weakness in ISM PMI will indicate the need for further monitoring—especially ahead of the release of key employment data in the U.S. at week’s end.
Corporate Reports: Results of Major Companies
On Tuesday, the earnings season continues with the release of financial reports for the recent quarter. On September 2, investors are primarily focused on American issuers, as most of the largest companies in Europe (Euro Stoxx 50) and Japan (Nikkei 225) reported earlier in August. Below are key public companies revealing their results today:
- Signet Jewelers (S&P 500, USA) – the largest jewelry retailer in North America and the UK (Kay, Zales, Jared chains). The company will present its Q2 results; analysts are forecasting a slight decrease in profits compared to last year. Investors will pay attention to jewelry sales dynamics and the effect of Signet's new strategy, focusing on promoting its own brands and growing the lab-grown diamond segment.
- NIO Inc. (NYSE, China) – a leading player in the electric vehicle market in China, whose shares are traded in the U.S. A Q2 report is expected, in which the company is likely to report a loss again, but smaller than a year ago. NIO's revenue continues to rise amid increased electric vehicle deliveries and an expanding model lineup. Key focuses will be the sales growth pace in the domestic Chinese market and progress in cost-cutting efforts, as well as the company's forecasts for reaching profitability.
- Zscaler (NASDAQ, USA) – cloud security and data delivery network. The company will report after market close. Zscaler has demonstrated rapid revenue growth (around +20% year-on-year) due to demand for "zero trust" solutions in cybersecurity. A key question for investors is the dynamics of new contracts and profitability: the market is looking for signals of the company approaching sustainable profitability, as Zscaler is expected to turn a profit only in a couple of years.
- Academy Sports & Outdoors (NASDAQ, USA) – a major American retail chain for sports goods and equipment. It will present its figures for the last quarter before the start of the fall season. The market expects steady growth in sales and profits (projected EPS growth of ~5–7% year-on-year) due to strong demand for active lifestyle and sports products. Academy Sports' data will serve as an indicator of consumer spending state in the non-food retail sector.
In addition to the aforementioned companies, several technology firms from the S&P 500 index are set to release results this week (e.g., Salesforce, Broadcom, Lululemon), but their reports will come after September 2. In Europe and Asia, no new reports from major companies are expected today—the semiannual reporting season there is nearing its conclusion. **In the Russian market (MOEX index)**, the majority of corporate results for Q2 were already published by the end of August, so no significant reports from Russian issuers are scheduled for September 2.
