Another week of important data releases for the US

Again, the US is expecting multiple important economic data including more PMI figures and Nonfarm Payrolls.

US

To start the week the Fed Chair, Jerome Powell, is due to deliver the opening remarks at the New York Innovation Centre. Volatility can be experienced during these speeches as investors attempt to decipher clues on potential interest rate changes.

Consumer Confidence will be released on the Tuesday, which is expected to drop from 113.8 to 110.0. This data will be crucial in determining consumer spending, which is a large factor in overall economic activity and therefore will likely impact key US stocks.

Wednesday we are expecting both employment data and Manufacturing PMI. ADP Employment Change is expected to fall to 515k, lower than the previous 571k, as people carry on retuning to work after the pandemic. The ISM Manufacturing PMI will also be a key indicator of the current views of companies on the economy, and again it is not only predicted to expand but at a slightly quicker rate of 61, as opposed to 60.8 currently.

Friday is arguably the most important day as Nonfarm Payrolls are released, surprisingly expected to drop by 31k down to 500k. Furthermore, ISM Services PMI, similar to the Manufacturing PMI, will show more current views on the economy which investors will be watching carefully. Lastly, the Unemployment Rate is set to slightly reduce to 4.5% down 0.1% from previous.

UK

Wednesday is the only major day for UK economic data releases, as Markit Manufacturing PMI is expected to slightly drop to 57.7, but as this figure is still above 50, it still shows an expansion of the industry.

Andrew Bailey, Chair of the BoE, is also expected to deliver a speech at the Institute and Faculty of Actuaries in London, and traders will be scrutinising his every word.

Rest of the World

Elsewhere around the world, the EU is expecting CPI data and Retail Sales, which again should give some indication of inflation rates, and therefore any potential increases in interest rates by the European Central Bank. Although the CPI is predicted to slightly fall from 4.1% to 3.7%.

In Asia, Japan will release their Jobless rate and Industrial production, while China is also set to have figures on their Manufacturing PMI.