Welcome to the Investors Trading Academy economic calendar of the week. Each week our news analysts review the upcoming economic events that you should be monitoring. Headlines over terrorism and immigration will dominate the markets after the triple bombings in Brussels spread worries throughout Europe. Monday sees many markets on extended holidays for Easter Monday.
In the UK, the heaviest day for releases will be Thursday, with figures on fourth quarter Gross Domestic Product, monthly mortgage approvals, money supply and the current account balance (deficit) are all set for release.
Previously, on Tuesday, British lenders would find out whether the Old Lady on Threadneedle Street wants them to start building up additional capital buffers to guard against the potential risks that might arise from looser lending.
Of course, in the end the week’s main event is still expected to be the March US non-farm payrolls report.
In the Eurozone, a slate of manufacturing sector purchasing managers’ indices out of the euro area will also be worth watching for any signs of improvement on the heels of the European Central Bank’s latest stimulus measures.
On Friday in the US, the all-important monthly jobs report is issued. Main interest is in job numbers — in particular, the change in non-farm payrolls. And economists expect that 200,000 jobs were created in March, down from 242,000 in February. The unemployment rate may have held steady at 4.9 per cent with average earnings up 0.2 per cent. The wage reading is important. Higher wages infer higher inflation and higher interest rates.
Also on Friday, consumer sentiment, construction spending and car sales data are released with the ISM manufacturing reading. In China, purchasing manager surveys for manufacturing and services are due.
Strong growth in jobs and a decent pickup in wage growth could see the greenback rally gather momentum, which would have deleterious consequences for oil prices.
Company news is very thin on the ground this week, with some way to go before we get into the next US earnings season. As a result, the economic calendar will be the main focus, and here at least we have a decent selection of data from the major economies, including China, which will release PMI data for both its manufacturing and services sectors.
By Barry Norman, Investors Trading Academy – ITA
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