Investors will be watching this week for decisions by the European Central Bank (ECB), unemployment figures in the United States and poor relations between Washington and Beijing.
The macroeconomic chapter also highlights data from the May purchasing managers index (PMI) for the euro area and the United States.
According to José Lizán, manager of Magnum Sicav at Solventis, “next week comes after the tensions between the US and China. They did not like the Chinese government’s decisions about Hong Kong, and then the response of Trump, who wants to use China as a throwing weapon in the face of elections. There are certain tensions that can serve as a catalyst to take profits. “
“Next week we have interesting macro data, such as manufacturing data in the Eurozone, China and the US. There will be a recovery earlier for the industry, as has happened in Asia and China. The services sector will be more punished and it will cost him more to take off in the reopening of the economy. Any positive clue regarding manufacturing will be well received by the markets so that the cyclical sectors do it well, “Lizán told EFE.
Markets will be attentive on Thursday to the European Central Bank meeting, according to Stefan Rondorf, of Allianz Global Investors, as “the new economic forecasts will be of interest: how deep will the recession be, according to experts from the European monetary authority and What consequences will it have for inflation? It is not clear whether the ECB will already announce new stimulus measures next week, at least given that pressure from the capital market has eased considerably. “
Likewise, some questions are also to be expected at the press conference regarding the ruling of the German Federal Constitutional Court, which potentially limits future stimulus actions by the ECB, according to Rondorf.
The market will be pending on Friday for the US employment market report.
“The US labor market report should reflect the full impact of the containment measures: the unemployment rate could rise to around 20%. Unemployment rates will also be published in the euro zone (on Wednesday Likewise, we will know the new orders for April from the USA (Wednesday) and from Germany (Friday), as well as the final data from the May purchasing managers indexes worldwide. Preliminary estimates showed a stabilization from record lows to levels still in recession, “according to this expert.