This week, trade data from China and industrial production from the European Union are expected to show strength, while in the U.S., reports on retail sales, consumer prices and industrial production will offer clues on how the world’s largest economy is faring.

MONDAY: China’s inflation should have held steady in June, reflecting stable demand for consumer and industrial products. Economists expect the consumer-price index to rise 1.5% from a year earlier and the producer-price index to increase 5.5%, both maintaining the same pace as May. (Data will be released Sunday evening U.S. time.)

WEDNESDAY: Business surveys suggest the eurozone’s economic recovery gathered pace in the second quarter, and official figures on activity are starting to support that evidence. Figures from the European Union’s statistics agency are expected to show a 0.8% rise in industrial production in May from the previous month, which would be the largest increase since November 2016. However, there are few signs that more rapid growth is lifting inflation, and the European Central Bank is therefore likely to proceed cautiously when considering a withdrawal of stimulus.

Federal Reserve…