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Weekly Market Intro – in anticipation of the US GDP and business activity data

weekly market recap

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The global stock exchanges have been powerless lately. Wall Street blue-chips ended the fifth consecutive week into the red, while the broader index recorded its longest series of weekly falls since December 2018.

The Dow Jones index failed to overcome the 26,000-point hurdle. Uncertainty about global trade has certainly played a major role, and perhaps the US economy is also a bit overwhelmed.

During the new week, the markets will focus on the US GDP and business activity data with anticipation for hints on the future monetary policy course. The first-quarter reporting season is almost over and it’s becoming quite clear that the earnings momentum in the market’s two major pillars — technology and retail — is slowing. However, we have some key earnings statements during the week, including HEICO Corporation, Tilly’s Inc and Marvell Technology Group.

Upcoming economics data

This week, the markets will focus on the US consumer confidence data, unemployment in Germany, the US GDP and business activity in the Chinese industry will be traced.

On Monday, May 27, will be released the employment data will in Switzerland for the first quarter. The markets in the UK and the United States will be closed.

On Tuesday, May 28, Switzerland will also release GDP data in the first quarter of 2019. The day will continue with Germany’s Consumer Confidence Index for June with a consensus forecast for a slight decrease to 10.3 points versus 10.5 points reported for May. For the Eurozone, will be published the inflation expectations for May, as well as for consumer confidence and business climate. The markets will focus on the US consumer data for May with expectations for a slight increase to 129.8 points.

On Wednesday, May 29, the day will begin with the latest data on sales of new homes in Australia as well as business confidence in May. In France, will be released a data on the GDP and inflation, while in Germany will by published the data on the labor market. The Canadian Central Bank will meet on monetary policy, expecting to keep the interest at a rate of 1.75%.

On Thursday, May 30, Australia will announce the data on building permits in April. In New Zealand will be published the latest business climate data. Later during the day, a series of important US macro data will be released, including the GDP for the first quarter, unemployment claims, housing sales, and crude oil stocks.

On Friday, May 31, Japan will publish data on the labor market, industrial production, and retail sales. China will report May PMI data in the industry with the consensus forecast for a slight increase to 50.5 points compared to the previous month. Germany will release the data on retail sales with expectations for a fall by 0.4% in April, down from 0.2% a month earlier. The week will end with Canadian GDP data for March.

Upcoming corporate earnings

On Tuesday, May 28, the investors will return after the long weekend and will focus on the financial statements of Canadian multinational financial institution Bank of Nova Scotia and the Israeli international defense electronics company Elbit Systems. The key event during the day will be the earnings report of the US aerospace and electronics company HEICO Corporation.

On Wednesday, May 29, will be published the financial report of the cloud-computing company Veeva Systems, clothing retailer Tilly’s Inc, and the analog and mixed-signal semiconductors supplier Semtech Corporation. During the day will be released the earnings statement of Bank of Montreal.

On Thursday, May 30, the markets will focus on financial statements of the Greek Alpha Bank and the US semiconductor manufacturer Marvell Technology Group.

On Friday, May 31, will be published the earnings report of low-cost airline Wizz Air Holdings.