What to expect next week 29.05 - 02.06.2017

Last week the stock market managed to recover and some of the indices managed to reach new peaks. Attention was directed at the OPEC meeting on Thursday, at which members of the organization decided to extend the period of shortened oil production for another nine months to 1.8m. barrels per day. Investors' expectations was different, and oil dropped after the final decision.

Amid of rising markets, the Japanese yen dropped against its major competitors, and the euro was on a rise against the opening on Monday, until it wiped out all gains in friday. The dollar has stabilized since the Fed. Despite the growth of stock markets, gold has continued to rise and this week will close with approximately 0.9% growth.

Next week, investors will pay attention to data on new jobs in the US. Most likely, markets will be traded unchanged until Thursday, when forecast data on new jobs is expected from ADP.

Here are the most important news that will move markets during the new trade week:

Monday - A holiday day in China, the United States and the UK.
On Monday we expect the unemployment rate in Switzerland at 10:15.

Tuesday
The first major news on Tuesday comes from New Zealand and Australia with building permits data at 01:45 and 04:30. Later in the day, we expect France's GDP data at 09:45 and the German consumer price index at 15:00. At 17:00, we expect US consumer confidence data.

Wednesday
During the Asian session at 04:00, we expect China's production PMI data. Expectations are for worse data that will have negatively affect on currencies which is directly related to the Chinese economy, such as AUD and NZD.

At 11:00 during the European session we expect the unemployment rate from Germany, which is important for the euro area and if we see a big difference in the data, we can expect strong movements in the euro. Later in the day, at 12:00, we expect the Eurozone's CPI and the unemployment rate. The data are of big importance for the region and investors will focus on them

At 15:30 Canada will release official GDP data for the country in the first quarter. Against the backdrop of falling oil prices, investor expectations are negative. If, however, Canada shows better growth in the first quarter, we are likely to see short-term growth in the Canadian dollar.

At 17:00 we expect the data on upcoming sales of existing homes in the United States. Better data would support dollars and US indices.

Thursday
On Thursday, the first major news comes from Australia at 02:30 - AIG Index of Production. Later in the day at 04:30 again from Australia we expect the sales data. Investors' expectations are positive, and if the data is better we will see growth in the Australian dollar.

At 04:45 China will release Caixin Manufacturing PMI data, with expectations for weaker data. If data gets worse, as expected, we will likely see a decline in Chinese-dependent currencies such as NZD and AUD.

Later in the day, we expect a number of PMI data in the manufacturing sector, with the first most important being 10:55 for Germany, 11:00 for the eurozone and 11:30 for the UK.

At 15:15, the ADP data for Non Farm Payrolls will be published from the US. The data will have a strong impact on the US dollar and US indices. The data is preliminary but will show what the real data will likely be.

Later in the day at 18:00, US crude oil inventories will also be published.

Friday
The first most important news from the last working day of next week, comes at 4:00 am from Australia - sales of new homes. Then at 11:30 UK will publish PMI construction data.

The most important news on Friday is undoubtedly the data on new jobs in the states at 15:30. At the same time, the data on the country's trade balance and the level of unemployment will be announced. The data will have a very strong impact on the markets, and large US dollar movements and indices are not excluded.

Jr Trader Petar Milanov

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