Next Week, In the holiday-shortened week, markets will focus on the U.S. jobs report on Friday, Federal Reserve Chair Powell’s comments, and French and UK elections.
US nonfarm payrolls
Investors are awaiting Friday’s nonfarm payrolls report to gauge the Federal Reserve’s interest rate cut. The US economy is expected to add 189,000 jobs in June, indicating labor market resilience. The Fed has kept rates unchanged and delayed rate cuts until December. A May job opening report is expected.
Fed minutes
Fed Chair Jerome Powell and ECB President Christine Lagarde will discuss “monetary policy in an era of transition” at the European Central Bank’s annual forum in Sintra, Portugal. Investors are looking for insights on future interest rates. The Fed’s June meeting minutes will be examined for economic outlook and monetary policy outlook.
Elections in France, UK
France’s snap election results are expected to be released on Sunday, with investors anticipating the second round’s results. The 577-constituency race, featuring three-way races, may lead to uncertainty. Meanwhile, polls predict a landslide Labour Party victory, bringing stability to the UK after political turmoil. However, the majority of the vote remains uncertain.
Eurozone inflation data
Eurozone inflation data is set to release on Tuesday, following Germany’s report. Economists anticipate a slight slowdown in headline and underlying measures after an increase in May. The ECB’s June meeting minutes will be published on Thursday.
China PMIs
China’s manufacturing activity declined for a second month in June, while services activity reached a five-month low. Analysts expect China to implement more policy support measures and boost fiscal stimulus to boost domestic consumption.