Yazar: Noreen Burke
Investing.com – With the IMF’s spring meeting and the Fed and the European Central Bank (ECB) meeting minutes, the next week looks set to be pretty quiet. Stock markets could see support from Friday’s jobs report coming stronger than expected, and investors will watch whether Congress will pass President Joe Biden’s grand infrastructure plan. On Monday, ISM service sector data will gain interest after March saw an improvement in a similar survey for manufacturing.
What you need to know when starting the new week:
1. The increase in stock markets may continue
US markets started strong in April: for the first time on Thursday, the 4,000 level was toured. These increases may increase after the Department of Labor’s work report on Friday. According to the report, the US economy experienced the highest job growth in seven months with March. Job growth in February was also greater than the initial forecast.
The US, Europe and some other stock markets were closed due to Good Friday, and will continue to be closed in some areas due to Holy Monday.
The rally in the market is driven by the US’s massive stimulus plan and expectations that vaccine distribution will spur economic recovery.
Investors will watch whether Congress will pass on the grand infrastructure plan announced by President Joe Biden last week. In addition to spending $ 2 trillion, it also includes plans to increase corporate taxes, which investors fear will affect profits.
2nd IMF meeting
The IMF begins (virtually) its spring meetings on Monday. Politicians will shed light on the economic repercussions of the epidemic and update their 2021 and 2022 growth forecasts.
IMF Managing Director Kristalina Georgieva has already pointed out in the updated World Economic Outlook that there will be an upward revision of the 5.5% global economic growth forecast for January this year.
Apart from the updated economic outlook, G20 finance ministers will meet on Wednesday to discuss debt suspension initiatives.
3.Central bank minutes
The Fed will share March on Wednesday and investors will be scrutinizing for new views on inflation amid concerns that the unique stimulus package will lead to increased price pressures.
Fed Chairman Jerome Powell underestimated inflation concerns after the March meeting, saying that politicians temporarily saw inflationary pressures.
The ECB will share on Thursday. Last week, ECB President Christine Lagarde said investors could test the bank’s willingness to contain rising borrowing costs “as much as they want”.
4. Powell and Fed talks
Investors will watch Fed Chairman Jerome Powell, who will discuss the global economy at an IMF panel on Thursday.
Other Fed politicians will also speak during the week: Richmond Fed Chairman Tom Barkin will appear on Wednesday, and Chicago Fed Chairman Charles Evans will appear on Tuesday and Wednesday.
In other news, US Treasury Secretary Janet Yellen will speak at a webinar organized by the Chicago Council on Global Affairs on Monday on the recovery of the global economy from the pandemic.
5. Economic data
The Supply Management Institute (ISM) will share its activity data on Monday. An ISM survey published last week on the manufacturing sector showed activity hit a 37-year high in March – a strong sign that the economic recovery is likely on track.
This week’s economic calendar includes weekly Thursday and Friday.
– This news has the contribution of Reuters.