Week Ahead: 5 things to watch on the economic calendar

1. Empire State, Philly Fed Manufacturing for May.
The New York Federal Reserve Bank is to publish the Empire State manufacturing survey for May on Monday, amid expectations for a modest improvement to 7.0 from 5.2 in April.
That is followed by the Philly Fed's own manufacturing survey due on Thursday. Market analysts expect the index to tick down to 19.8 in May from 22.0 in the preceding month.
Besides the manufacturing surveys, this week's calendar also features U.S. data on building permits, housing starts, industrial production and weekly jobless claims.
Markets are currently pricing in around a 70% chance of a rate hike in June in the wake of last week's disappointing U.S. retail sales and inflation reports, according to Investing.com's Fed Rate Monitor Tool.
Earnings from the likes of retailers such as Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Home Depot (NYSE:HD), Gap (NYSE:GPS) and TJX (NYSE:TJX) are also on the radar this week, especially in light of last week's downbeat results from department store retailers like Macy's (NYSE:M) and Nordstrom (NYSE:JWN).

2. Data on industrial production in China. Data on industrial production in China has already been published and proved to be weaker than expected. The expected value for industrial production was 7.1%, but the real value is 6.5%. The news did not have a strong impact on the indices and Chinese currencies such as AUD and NZD.

3. Euro Zone Q1 GDP - Revised Reading
The euro zone will release revised first-quarter growth data on Tuesday. An initial estimate published earlier this month showed that the region's economy grew 0.5% in the three months ended March 31, accelerating from growth of 0.4% in the fourth-quarter.
Other data out of the euro zone this week include final inflation and consumer confidence figures.
In addition, market participants will be focusing on Tuesday's ZEW survey data on German economic sentiment to gauge confidence in the euro zone's largest economy.
European Central Bank President Mario Draghi reiterated last week that the ECB is in no rush to raise interest rates or wind down its massive bond-buying program, warning that it is still too early to declare victory in its quest to boost inflation despite signs the bloc's economic recovery is strengthening.

4. U.K. April CPI, Employment & Retail Sales
The U.K. Office for National Statistics will release data on consumer price inflation for April on Tuesday. Analysts expect consumer prices to rise 2.6%, after increasing 2.3% a month earlier.
On Wednesday, the ONS will publish the monthly jobs report. The claimant count change is expected to rise by 5,000 in April, with the jobless rate holding steady at 4.7%. Wage growth including bonuses is forecast to rise 2.4%.
On Thursday, the ONS will produce a report on April retail sales, with analysts expecting an increase of 1.0%, following a drop of 1.8% in the preceding month.

5. Japan Preliminary First-Quarter GDP
Japan will publish preliminary first-quarter economic growth data on Wednesday. The report is expected to reveal that Japan's economy expanded by 0.4% in the first three months of the year, compared to growth of 0.3% in the preceding three-month period.
The economy is expected to show growth at an annualized rate of 1.7% in the first quarter, which would be the fastest growth rate since the second quarter of 2016.
Private consumption, which accounts for roughly 60% of gross domestic product, was seen rising 0.4% in the first quarter, after it showed no growth in the October-December period.

Source: Investing.com

Jr Trader Petar Milanov

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