This Week, Global Markets Turned Their Attention to the US Data

With the end of May, which will make a name for itself with its fluctuations, global markets are turning their attention to the US non-farm employment and Euro Zone inflation data this week. The first quarter growth data will be recorded in the coming days.

Nonfarm payrolls data in the United States, to be released on Friday, will underline whether the Fed's total 75 basis point rate hike since March has had an impact on the job market. According to the survey data, employment data, which increased by 428 thousand in April, is expected to increase by 325 thousand in May, while data for some sectors such as housing in the USA weakens and recession concerns increase. In addition, the decline in the employment market may not slow down the interest rate hikes carried out by the US Federal Reserve with inflation. Markets expect the Fed to increase interest rates by 50 basis points each in June and July. In China, the world's second largest economy, the effects of the 'zero Covid' policy on the economy will be evaluated, with the PMI data to be published on Tuesday and Wednesday this week. The Premier of the People's Republic of China, Li Keqiang, forecasted "reasonable" growth for this quarter. The Chinese government announced some packages in the economic support assessment. Despite this, many economists are predicting an economic contraction this quarter. While the CSI 300 index in the country has fallen by 20 percent since the beginning of the year, the yuan continues to move at the lowest levels seen since 2020. While the inflation in the Euro Zone, which was 7.4 percent in April, is expected to continue to increase and break a new record with 7.6% in May, this increase may support the expectation of the European Central Bank to start policy normalization soon. The bank is expected to increase interest rates by 25 basis points in July. Growth in Turkey Domestically, the first quarter growth data will be followed on May 31. According to the economic surveys, the Turkish economy is expected to grow by 7.20 percent in the first quarter and 3.50 percent in the whole of 2022. The Turkish Statistical Institute (TÜİK) will announce the Consumer Price Index (CPI) and Domestic Producer Price Index data for May on Friday, June 3rd. CPI increased by 7.25 percent monthly and 69.97 percent annually in April.