5 Key Developments to Watch Next Week

Here are 5 key developments to watch for next week. The markets will start the second half with the start of this week. Here are the important developments you need to know before starting the new week:

1- FED Reports

The reports of the June meeting, where the FED (US Federal Reserve) discussed the issue of reducing the bond purchase program and gave the message that interest rates could be increased sooner than expected, will be announced on Wednesday. This dynamic looks set to continue to put pressure on the markets ahead of the FED's July meeting and its annual meeting in Jackson Hole, Wyoming, in August.

2- ISM Service Data

The ISM services index will be released on Tuesday and is expected to continue to show strong growth after hitting the record in May. The report could also highlight ongoing problems in the workforce as hiring has fallen back, causing companies to offer higher wages to attract staff. Investors will also scrutinize Thursday's first unemployment benefit claims. Last week's report proved that initial applications had fallen to the lowest level since March 2020.

3- The Second Half Begins

As the markets enter the second half, investors will be waiting for signals whether the bull trend in the first half will continue. Although the US stock market seems close to record levels, some market analysts draw attention to the warning signs in some parts of the market.

4- ECB Reports

The ECB (European Central Bank) will share the reports of its June meeting. The bank plans to change the inflation target, which is currently close to 2%, and complete the assessment by September. On Wednesday, the engine of the Eurozone, Germany, industrial production figures; The European Commission will share the EU's economic forecasts.

5- Inflation Data in China

China will release both the CPI and PPI report on Friday. Markets will closely monitor the raw material cost, which has increased due to high commodity prices, and whether these increases are reflected on the consumer.     Source: Investing.com