Markets: What to look out for this week? – Deutsche Bank
According to analysts at Deutsche Bank, inflation data should be the overwhelming focus for markets today with preliminary April CPI reports due in Germany and Italy, and the March PCE core and deflator readings along with personal income and spending due in the US.
Key Quotes
“Other data worth highlighting is the official April PMIs in China along with the April Chicago PMI, March pending home sales and April Dallas Fed PMI in the US. Earnings highlights on include McDonalds and Allergan.”
“Tuesday: Overnight we'll receive the final April manufacturing PMI in Japan. In Europe the focus is on the UK with March money and credit aggregates data, along with the April manufacturing PMI. In the US we'll also receive the final April manufacturing PMI print along with the April ISM manufacturing, March construction spending and April vehicle sales data. The headline earnings release tomorrow is Apple, while results from Pfizer, Merck and BP will also be closely watched.”
“Wednesday: A busy day headlined by the FOMC meeting outcome in the evening. Prior to that we'll get the April ADP employment change print in the US, while in Europe a first look at Q1 GDP for the Euro area and Italy is due. The remaining April manufacturing PMIs will also be out in Europe while in China we'll get the April Caixin manufacturing PMI. Japan will also release its April services and composite PMIs. The other big event on Wednesday is the US Treasury announcement of its debt issuance plans. EU and UK Brexit negotiators will also begin the next round of Brexit talks, continuing through to Friday. Kraft Heinz and Tesla results are due on Wednesday.”
“Thursday: Another busy day for data headlined by the April CPI report for the Euro area. March PPI data for the Euro area will also be out while the latest European Commission forecast updates will be released. The final April services and composite PMIs in the UK will also be out in the morning. In the US preliminary Q1 nonfarm productivity and unit labour costs data are due, along with the March trade balance print, April ISM non-manufacturing, weekly initial jobless claims, March factory orders and the final March durable and capital goods orders data. Away from the data, the ECB's Constancio and Coeure are due to speak in Frankfurt.”
“Friday: The big highlight at the end of the week is in the US with the April employment report due to be released. In Europe the final April services and composite PMIs will be released, while France's March trade balance and the Euro area's March retail sales data will also be out. In China we'll also get the remaining April Caixin PMIs (services and composite). The Fed's Dudley is scheduled to speak in the early evening. Berkshire Hathaway, Alibaba, HSBC, BNP Paribas and Societe Generale are due to report earnings.”