Economic Calendar - Top 5 Things to Watch This Week

Economic Calendar - Top 5 Things to Watch This Week  | Jun 07, 2020 21:05

Economic Calendar - Top 5 Things to Watch This Week

By Noreen Burke - The main focus this week will be on Wednesday’s Federal Reserve meeting, with investors on the lookout for clues on how much more, if any, stimulus may be needed. The U.S. calendar also features data on CPI, jobless claims and consumer sentiment. Investors will continue to monitor the steepening yield curve amid a selloff in U.S. bonds. In the euro zone, European Central Bank head Christine Lagarde will likely offer more insights into last week’s larger than expected increase in its stimulus program. Concerns over Chinese growth could also be on the radar after weak trade data on Sunday. Here’s what you need to know to start your week.

  1. Fed meeting

The U.S. central bank's monetary policy announcement on Wednesday will be the first since April when Fed Chair Jerome Powell said the U.S. economy could feel the weight of the economic shutdown for more than a year.

Investors will be keen to hear the Fed's views on the economic outlook in the wake of Friday’s U.S. employment report which showed that the economy unexpectedly added jobs in May after suffering record losses in the prior month.

The report offered the clearest signal yet that the worst of the downturn triggered by the coronavirus crisis is probably over, fueling a rally in stocks and a selloff in Treasuries.

  1. Steepening yield curve

Friday’s U.S. jobs report added fuel to a dramatic sell-off in U.S. government bonds from their recent record highs, pushing the yield curve to its steepest level since March.

The steepening -- when longer-dated yields rise faster than short-dated ones -- signals a brighter growth outlook. But too fast a rise in borrowing costs can strangle the economic recovery.

While the Fed could introduce yield-curve control measures to target short-term rates, fund managers say they expect yields will need to rise significantly to justify any intervention in the bulk of the curve. Instead, they are watching for hints that the central bank believes the economic rebound can support the rise in yields.

  1. U.S. economic data

This week’s calendar also features updates on U.S. jobless claims, a key indicator of the health of the economy, along with consumer price inflation and consumer sentiment.

Claims have declined since hitting a record 6.8 million in late March, falling below 2 million last week for the first time since mid-March. The report suggested the worst is over for the labor market, combined with Friday’s nonfarm payrolls report.

Meanwhile, CPI should continue to ease given the lack of demand in the economy, while the University of Michigan’s consumer sentiment index should continue to rise amid the re-openings and rally in stock markets.

  1. Lagarde testimony, euro zone data

On Monday, ECB President Christine Lagarde will testify, via satellite link, before the European Parliament Economic and Monetary Affairs Committee. Lawmakers will have the opportunity to ask questions about the reasons behind the ECB’s larger-than-expected increase in its emergency bond buying stimulus program.

On the data front, Germany is to release industrial production data for April on Monday followed by France and the wider euro zone later in the week. Germany, the euro area’s largest economy, is facing the prospect of its deepest recession since World War Two as the coronavirus pandemic takes its toll, even though lockdown restrictions are now being eased.

  1. China growth fears

Chinese trade data on Sunday indicated that global demand for goods produced by the world’s second-largest economy remains weak.

Chinese exports contracted in May as global coronavirus lockdowns continued to devastate demand, while a sharper-than-expected fall in imports pointed to mounting pressure on manufacturers as global growth stalls.

The data could reinforce expectations that China may not have any growth this year. Investors will be watching to see how bullish stock markets will react as the unstoppable force of Chinese production runs into an impregnable global downturn.

--Reuters contributed to this report

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.