[ad_1]
© Reuters.
Investing.com – Market watchers will look at inflation and trade after the Federal Reserve's last week's update on monetary policy, while profits should slow after a week of turbulent results in the sector technologies.
Here's what you need to know to start your week.
1. US inflation figures
Investors will closely monitor producer and consumer inflation data expected Thursday and Friday after the US Federal Reserve meeting last week, during which President Jerome Powell described the recent weakness as "transitory" US inflation.
Powell said policymakers did not see strong arguments for a two-way rate cut, despite public pressure from President Donald Trump to lower interest rates to support l & # 39; economy.
According to consensus forecasts, consumer prices will increase from month to month and year to year.
So, is Powell right in his vision of inflation? Some recent indicators, ranging from growth in the first quarter to factory controls to productivity, have been quite strong. The downside is that manufacturing is growing more slowly and stocks are increasing. The reports will help confirm whether low inflation is really transitory.
2. trade negotiations with China
Trade negotiations will return to the fore, in the hope of finding a solution to the conflict that has lasted for several months between the two largest economies in the world.
Chinese Vice Premier Liu He is due to arrive in Washington for talks beginning on Wednesday after a series of talks in Beijing that Treasury Secretary Steven Mnuchin has called "productive."
Mnuchin said he hoped the US team would be able to recommend an agreement to Trump by the end of the week or tell him that an agreement could not be reached.
US Vice President Mike Pence said on Friday that the president "will remain firm" on his demands for structural changes to China's business practices. The removal of US tariffs on Chinese products would be part of a mechanism to enforce any agreement with Beijing.
3. European data to watch
Economic reports are becoming more important than usual these days as markets try to decide if the green shoots that grow in some places are the real deal.
Reports on German and this week will assess the strength of the largest economy in the euro zone after last week's data showing that the bloc's economy had grown more than expected in the first quarter, bouncing back after a recession in the second half of 2018.
In the UK, a series of data, including a preview of the first quarter, is expected on Friday, after the Bank of England has raised its growth forecast for 2019 after its meeting last week, while reducing its inflation prospects.
The bank's new forecast is the first since the Brexit deadline has been pushed back to October and the timing and nature of Brexit remain the most important factor for the economic outlook.
4. Income reports
Profits are expected to slow this week with about sixty companies listed on the board to publish their quarterly reports, including Walt Disney (NYSE :), TripAdvisor Inc. (NASDAQ :), AIG (NYSE 🙂 and others.
Hiking Company Lyft (NASDAQ 🙂 is expected to release its first earnings report after Tuesday's close, as equities are currently down about 14% since its IPO at the end of March. The market's reaction to the release of the results could set the tone for rival Uber (NYSE 🙂 before his next IPO later in the week.
5. Central Banks
The meetings Tuesday followed a day later by the. Both economies face low inflation, strong labor markets and reduced room for maneuver to reduce interest rates. The two economies also have close ties with China, where growth is slowing.
The rise in the exchange rate suggests that investors see a greater chance of reduction in New Zealand. If the RBA, which kept the policy steady for 29 meetings, cut spending on Tuesday, the RBNZ would have more reason to do so.
–Reuters contributed to this report
[ad_2]
Source link