Weekly Market Intro – PMI and inflation on focus | Finance and Markets

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The global stock exchanges suffered a serious blow recently from the Sino-American trade war, disappointing economic data, and US-Mexico tension.

Dow Jones registered a 3% drop last week, which is a sixth consecutive weekly loss and the longest series of weekly dips since 2011. The S&P 500 and Nasdaq saw a fourth consecutive weekly decline, breaking their four-month series of growths.

The first week of June looks pretty busy on macro data, including business activity data in China, Germany, the Eurozone, the United Kingdom, and the US, as well as inflation data in the Eurozone and the US employment.

Upcoming economics data

On Monday, June 3, the day will start with a series of important data for Australia, including the Purchasing Managers’ Index for industry and earnings in the first quarter. In China, the markets will focus on Caixin PMI for May with the consensus forecasts for analysts for a decline to 50 points from 50.2 points in the previous month. The Purchasing Managers’ Index in the industrial sector for May will be released also in Spain, Italy, France, Germany, the Eurozone, the United Kingdom, and the United States.

On Tuesday, June 4, the Australian central bank will hold a monetary policy meeting, with the expectations to reduce interest rates to 1.25%. During the day, the country will release the retail sales data for June. In the United Kingdom will be published the construction PMI for May with analysts’ forecast for a slight acceleration compared to a month earlier. Later, the markets will focus on the Eurozone preliminary data on inflation for May and unemployment for April. During the day is expected also the vote on the Brexit deal in the British Parliament.

On Wednesday, June 5, will be published Australia’s GDP data for the first quarter. Later during the day will be released the service PMI in China, Russia, Spain, Italy, France, Germany, the Eurozone, the United Kingdom, and the United States. Markets will focus also on retail sales data in the Eurozone in April with the consensus forecast for a decline of 0.1%. In the United States will be posted the data on the labor market, crude oil reserves and the Federal Reserve’s beige book.

On Thursday, June 6, the day will start with data on the Australian trade balance. Later, the markets will focus on the German plant orders in April with forecasts for a slowdown in growth to 0.3% versus 0.6% a month earlier. In the Eurozone will be published the GDP data for the first quarter and employment. The European Central Bank is meeting on monetary policy, and the messages that will come from Governor Mario Draghi are important for the markets with the expectation to hint for further interest rates changes. The US trade balance data for April will be released, as well as the number of unemployment claims from the previous week.

On Friday, June 7, Japan will provide information on household spending. Australia will report data on home loans in April. Later, in Germany will be released the data on the trade balance and industrial output in April. During the day will have a series of data for the US labor market. The day is off for China and Hong Kong.

Upcoming corporate earnings

On Monday, June 3, will be published the earnings report of Greek Piraeus Bank, the US technology company Coupa Software Incorporated and the cloud content management and file sharing service Box Inc.

On Tuesday, June 4, the markets will focus on the financial statement of the luxury jewelry and specialty retailer Tiffany & Co. The key event for the day will be the earnings report of Salesforce.com.

On Wednesday, June 5, will be published the financial report of the Norwegian aluminum and renewable energy company Norsk Hydro, the US data visualization developer AstroNova Inc and the telecommunications company IDT Corporation.

On Thursday, June 6, will be released the earnings statement of the French producer of cognacs, liqueurs, and champagne Remy Cointreau, as well as the US telecommunications company Ciena Corporation. During the day will be released the report of the retail chain Kirkland’s Home, but the focus of the markets will be on the American clothing brand and retailer Guess Inc.