5 Important Developments To Be Followed Next Week
There have been 5 important developments to be followed next week. Next week, the eyes of the markets will be on inflation data.
Here are the aforementioned developments:
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April Inflation Data
The US economic data calendar includes CPI figures for April on Wednesday. Investors are concerned that increasing price pressures may cause the FED to start withdrawing monetary support.
While inflation was rising,
FED officials had repeatedly emphasized that this rise was due to temporary factors. US job growth fell sharply last month, with only 266,000 jobs created in the economy, according to data on Friday. Expectations were for an increase of 978,000. Unexpectedly weak data reinforced doubts this year about some investor expectations that the FED might start reducing its incentive measures.
PPI data will be released on Thursday, while retail sales data will be released on Friday. Increasing retail sales in March were supported by incentive checks. This effect is expected to be reflected in April as well.
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Pipeline Closed
The Colonial Pipeline, the top fuel pipeline operator in the US, left its entire network offline without informing when it will open after a cyberattack on Friday.
Colonial is the main source of gasoline for the East Coast and also provides services for the US's largest airports. The incident also revealed how weak the US energy infrastructure is against cyber attacks.
It was stated that an ongoing interruption in the network could lead to price increases in gasoline pumps before the summer travel season. While the pandemic restrictions are relaxed, this could impact US consumers and the economy.
On the other hand, this outage could affect the oil refineries on the Gulf Coast.
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FED Speeches
With the rise in the price of everything from raw materials to real estate, some investors are skeptical of the Fed's assurance that inflation will be temporary as a result of the government's massive economic stimulus programs.
Many
FED officials will make their speeches this week. These include Vice President Richard Clarida, Fed Administrator Lael Brainard, Chicago Fed Chairman Charles Evans, San Francisco Fed Chairman Mary Daly, New York Fed Chairman John Williams and Dallas Fed Chairman Rob Kaplan.
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Stocks
As some tech stocks soared on Friday after the unexpected business report, portfolio managers say "the spectacular results shared by many of the big tech companies are not enough to keep making big bets in the industry."
On the other hand, these executives also state that they continue to turn to value and circular shares, whose wealth depends on economic conditions, in the expectation that the economic recovery will take longer and will be more gradual than expected.
Investors will continue to monitor the results of names such as Disney, Marriott, AirBnB, and Tyson Foods.
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UK GDP Data
The UK, which will announce its first quarter GDP data on Wednesday, is expected to confirm that the outbreak continues.
Even if growth is expected to cease for this period, March figures may increase significantly due to reasons such as the distribution of vaccines and stretching of the measures.
Last week, the Bank of England (BoE) said that three months before the expectation, that is, in the last quarter of 2021, the economy will return to pre-epidemic and raised its growth forecast for 2021 from 5.0 percent in February to 7.25 percent.
Source:
Investing.com
