5 Important Developments to Follow Next Week
5 important developments to follow next week have been identified. Next week, all eyes will be on the Fed meeting.
Here's what you need to know before starting the new week:
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FED (US Federal Reserve) Meeting
The FED statement, which will be made at the end of the two-day policy meeting on Wednesday, will be extremely important for investors. Concerns remain as to whether inflation will put pressure on the central bank to cut stimulus ahead of schedule.
The Fed has repeated many times that near-term price increases will not translate into persistent inflation, and Chairman Jerome Powell is expected to maintain his stance and reassure that FED policy will remain expansionary.
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US Economy Data to be Released
On Tuesday, the
US will announce retail sales and PPI prices for May.
On the other hand, in addition to the problems related to supply constraints and shortages in the labor market, industrial production data will be closely monitored on the same day. It is stated that this situation may cause an increase in PPI.
The economic calendar also includes housing starts and first unemployment applications. Thursday's data showed that last week, initial unemployment claims fell to their lowest level in nearly 15 months.
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Stock Market May Proceed Calmly
Investors may be hesitant to take new positions and the stock market may proceed calmly ahead of the FED's announcement on Wednesday, which will be watched in terms of messages about the program regarding the rate hikes.
On Thursday, the S&P 500 broke a new record in the stock market, despite the CPI data that increased with the fastest annual rate in 13 years in May. On the contrary, higher-than-expected inflation figures last month fueled sales.
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China Will Disclose Lots of Data
China will release May industrial production and retail sales data on Wednesday and show investors the trajectory of the world's second-largest economy.
While domestic consumption is bad, both figures are expected to slow down compared to the previous month.
China's economy grew at a record 18.3 percent in the first quarter, and many economists are predicting growth to exceed 8 percent this year.
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Critical Decision Tomorrow for England
On Monday, British Prime Minister Boris Johnson will announce his decision whether to lift restrictions in the UK on June 21.
In a statement on Saturday, Johnson said he has "serious concerns" over the Delta variant of Covid-19, which was first detected in India, reinforcing his view that he will delay full opening for two to four weeks. On Saturday, 7,738 new cases were detected in the UK.
UK inflation, employment and retail sales data will be released over the next week, with all data projected to show continued recovery in economic activity.
Source:
Investing.com
