US PMI data and job reports will be released this week, including hourly earnings growth and the unemployment rate.
ISM survey PMIs will influence the US economic data front this Monday and Wednesday. Wednesday’s ISM Non-Manufacturing PMI will be the main driver.
The labour market will also be in focus. The ADP nonfarm employment change figures and official nonfarm payrolls for April due out on Wednesday and Friday.
However, the week’s main event is Wednesday’s FED’s monetary policy decision. Will a well-telegraphed plan to hike interest rates by 50 basis points spook the markets? Or will they become convinced that a hawkish Fed can tame inflation?
The U.S. economic momentum is slowing. US major indexes endured a fourth consecutive week of losses as disappointing earnings results. Particularly tech giants such as Apple and Amazon compounded growth fears.
The ongoing war in Ukraine, as energy tensions are rising, continues to threaten European activity. As a result, the EU is preparing the sixth package of sanctions on Russia which may include some form of oil embargo or another mechanism that would target Russia’s oil revenue.
The UK’s monetary policy outlook seems more certain, with a rate hike expected on Thursday.
Key developments that may provide more direction to markets this week:
Tuesday, May 3
Day 1 of May 2022 FOMC Meeting
Eurozone Unemployment Rate (April)
Wednesday, May 4
Day 2 of May 2022 FOMC Meeting; rate decision expected
ADP Nonfarm Payrolls Report (April)
U.S. ISM Services PMI (April)
Friday, May 6
U.S. Nonfarm Payrolls (April)
Canada Employment Report (April)
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