Wall Street indexes S&P 500 and Nasdaq Composite succeeded to change the trend during the last week and on Friday recovered after two days loss and eventually ended with a small weekly gain. On the other side, the Friday gain was not enough for Dow Jones, which lost about 0.1% for the week.
Market watchers will be turning their attention to inflation and trade after last week’s update on monetary policy from the Federal Reserve, while earnings are set to slow down after a hectic week of tech earnings last week.
On the stoplight of investors will be also the US-China trade talks. An end to the months-long trade conflict between the world’s two largest economies may be looming into sight.
President Donald Trump and Chinese President Xi Jinping will decide after negotiations this week in Washington whether they will meet to sign off on a pact. White House spokeswoman Sarah Sanders said Thursday that the US sees such a meeting as likely.
Concluding a deal will hinge on the two sides resolving the stickiest issues in their dispute. They include an enforcement mechanism to police the agreement and a decision over whether tariffs will be removed or stay in place, according to people briefed on the talks.
Upcoming economic data
On Monday, May 6, the investors will track the Service PMI in several European countries, including France and Germany, as well as the Eurozone. Also during the day will be released the retail sales in the Eurozone. In the US, the investors will watch 3- and 6-Month Bill Auction, as well as Fed’s Harker speech.
On Tuesday, May 7, will be published the Japanese Nikkei Manufacturing PMI for April. The Reserve Bank of Australia will decide on the interest rates and monetary policy, as well as publishing trade balance for March. In Germany will be released the data on factory orders. In France will be published trade data. Later during the day, the Fed will release Redbook index and Job Openings.
On Wednesday, May 8, the markets will focus on the Japanese services PMI and trade data from China. The Reserve Bank of New Zealand will publish a report of its last meeting and will decide on the interest rates. In Germany will be released data on industrial production, while the ECB will have a non-monetary policy meeting. Later during the day, the EIA will publish its data on crude oil inventories.
On Thursday, May 9, will be published the Consumer Price Index and Producer Price Index in China for April. In Japan will be released the Consumer Confidence Index and Machine Tool Orders. The Producer Price Index and Trade balance data will be published in the US.
On Friday, May 10, the markets will watch for trade balance and industrial output in the EU, as well as a series of economic data from the UK, including GDP, manufacturing and industrial production. The focus of the markets will be the Consumer Price Index in the US, which will be published later during the day.
Upcoming earnings reports
On Monday, May 6, will be published the financial reports of Air Canada, Brookfield Property Partners, Tyson Foods, and American International Group. A key event for the match will be the earnings reports of the telecommunications company Liberty Global and the chemical manufacturing company FMC Corporation.
On Tuesday, May 7, the markets will focus on earnings report by the chemical industrial corporation Evonik Industries, pharmaceutical company Dova Pharmaceuticals and the German consumer goods giant Henkel AG & Co. During the day will be published the financial statements of Brazilian oil giant Petrobras (Petróleo Brasileiro SA), carmaker Ferrari, and the Belgian chemical giant Solvay SA.
On Wednesday, May 8, the key corporate event will be the earnings report of Walt Disney Co. During the day will be released the financial statement of Office Depot, Triumph Group, BlackRock TCP Capital Corp, Thomson Reuters Corporation, and Encore Capital Group.
On Thursday, May 9, will be published the financial reports of the industry company Harsco Corporation, BP Midstream Partners, and shipowner Diana Shipping Inc. An important event for the markets will be earnings report of Norwegian Cruise Line Holdings.
On Friday, May 10, will be released the earnings report of the Chinese e-commerce company JD.com.