Yazar: Noreen Burke
Investing.com – It will be another busy week with April business figures and first quarter earnings reports as the markets enter May. Investors will also get some data from Fed officials’ speeches. Among these data, there are PMI data as an indicator of the health of the US economy as the reboot continues. In England, the Bank of England (BoE) is expected to update its economic forecasts at Thursday’s meeting and may even begin to reduce the pace of asset purchases as the economy continues to recover from the recession caused by Covid-19.
What you need to know when starting the new week:
1. Strong business growth expected
The US economy is thought to have experienced another strong job growth in April. The report on non-farm payrolls, due on Friday, is expected to show job creation after March’s 916,000 readings. Estimates for the unemployment rate are that it fell from 6%.
Last week’s data showed that economic growth gained momentum in the first quarter, putting the economy on a path that is expected to be the strongest performance in nearly forty years this year.
Unprecedented financial incentives and reduced concern about the epidemic resulted in a faster economic recovery in the US compared to the rest of the world, as all adult Americans are now eligible for vaccination.
While more than half of their companies have shared their results, earnings are recovering from the levels they fell from last year due to the epidemic.
Reporting will continue this week with many names, including vaccine manufacturers (NYSE 🙂 and (NASDAQ :).
Hilton Worldwide In addition to travel-related names such as Holdings Inc (NYSE 🙂 (NYSE 🙂 and (NASDAQ :), some consumer brands such as (BR 🙂 and (NYSE 🙂 will also submit reports.
Other names include (NYSE :), (NYSE :), (NASDAQ :), DraftKings Inc (NASDAQ 🙂 (NASDAQ 🙂 and (NASDAQ :).
Earnings raise new questions on value versus growth shares. After a decade of poor performance in the general market, value shares have become the favorite bets of the reopening, and investors will watch whether this trend continues.
3. Fed speakers
The Fed Chairman will speak on Monday, but is not expected to present new economic data in his speech on social development at the online conference hosted by the National Community Reinvestment Coalition.
Last week, Powell said that “it’s not yet time” to talk about slowing the Fed’s $ 120 billion monthly bond buying pace.
Dallas Fed President Robert Kaplan will deliver speeches on Tuesday and Thursday, while New York Fed President John Williams, Minneapolis Fed President Neel Kashkari, Chicago Fed President Charles Evans, Boston Fed President Eric Rosengren and Cleveland Fed President Loretta Mester are among the names to speak.
4. PMI data
Investors will see and reports ahead of Friday’s important business report.
ADP’s survey will be announced on Wednesday. It will be published weekly on Thursday.
Applications fell from 6,149 million in April 2020, but still above the 200,000-250,000 range, which is consistent with a healthy labor market. The number of people receiving unemployment benefits in the first week of April was 16.6 million.
5th Bank of England meeting
With the UK economy recovering strongly from the recession caused by the epidemic, the Bank of England (BoE) could take Thursday’s foot off the incentive pedal and downscale the pace of bond buying.
Unlike the US Fed or the European Central Bank, which continues to buy open-ended bonds to support their economies, the BoE sets specific targets.
Analysts also expect updated economic outlook forecasts, including a larger recovery in second-quarter growth and a lower peak in unemployment.
In February, the BoE predicted that the economy will grow 5% this year, after production fell by almost 10% in the previous year, the biggest loss in 300 years.
– This news has the contribution of Reuters.