5 Important Developments to Follow in the Next Week

Here are 5 key developments to follow next week. Next week, the May nonfarm payroll report will be important.

Here are 5 important developments to follow before starting a new week have been compiled as follows.

1.May Monthly Job Report May Be Weak

The jobs report for May will be released on Friday and it will be understood whether the unexpectedly weak data seen in the April jobs report is a one-off or a more permanent slowdown in the labor market recovery process. It is estimated that 650,000 new jobs were added to the economy in May. Overall, economists expect strong job growth in the coming months as the economy reopens.

2.ISM PMI and Fed speakers

ISM manufacturing data will be released on Tuesday and ISM service data will be released on Thursday. Both readings are expected to be strong, as well as highlighting problems in the supply chain leading to shortages and high prices. ADP nonfarm payrolls report will be released one day later than usual due to Monday's holiday, alongside the first weekly jobless claims report on Thursday. The Fed's Beige Book will be released on Wednesday, and many Fed officials, including Chairman Jerome Powell, are expected to give speeches. The Fed Chairman will attend a climate change conference on Friday alongside IMF chief Kristalina Georgieva and European Central Bank (ECB) President Christine Lagarde. Other Fed officials who will be speaking during the week will be Fed Vice Chairman Randal Quarles, Fed Chairman Lael Brainard, Philadelphia Fed Chairman Patrick Harker, Atlanta Fed Chairman Raphael Bostic, Chicago Fed Chairman Charles Evans and Dallas Fed Chairman Robert Kaplan.

3.Equity Investors Advance With Care

Equity investors will be keeping a close eye on economic data and Fed officials' speeches, amid concerns that the central bank may begin to curb its massive stimulus program amid increasing price pressures. In the last few weeks, concerns about inflation have started to become permanent and also dragged growth stocks down. The Nasdaq showed its first monthly decline since October. Even as the S&P 500 came very close to its record high on May 7, volatility persisted and the index recorded the smallest monthly increase in four months in May. The US stock market will be closed on Monday for the Memorial Day holiday.

4.Eurozone Inflation Data to be Announced

Flash inflation figures in the euro area will be shared on Tuesday. Inflation in the bloc is fast approaching the ECB's 2% target, but like their US central bank counterparts, they say it may be temporary. The ECB is expected to discuss the possibility of reducing the bond purchase tempo at its June meeting, reflecting the stronger recovery.

5.OPEC+ Meeting

OPEC+ may stick to phasing out supply cuts in hopes of a strong recovery in demand. Oil has expanded the 2021 rally since OPEC+ decided to cut cuts by 2.1 million bpd in April and is already up more than 30% to close to $70. Concerns about the possibility of an increase in supply from Iran thwarted the increases experienced by oil. Iran and the world powers are negotiating the steps that Tehran and Washington should take regarding sanctions to ensure full compliance with the 2015 nuclear deal. If the deal is done, Iran could supply the global market with up to 2 million barrels of oil per day.     Source: Investing.com