The Week Ahead: Merkel vs. Trump
We still have a couple of weeks to go before we kick off the earnings season in Singapore. Before that, though, there is still quite a bit of economic news to digest.
There is also a crucial G20 meeting in Hamburg, when Angela Merkel and Donald Trump could lock horns over a number of issues. A clash seems almost unavoidable after Germany said climate change and free trade would be two of the key themes.
On Thursday, the Federal Open Market Committee will release the minutes of its June interest-rate meeting. At the powwow, the rate-setting committee decided to raise the target for its federal funds rate by 0.25%. There could be another rate increase this year. There might even be another two. But that would depend on what they said last time.
The US will also report its Non-Farm Payroll numbers and unemployment rates. In May, 138,000 jobs were created, which was below market expectations. The proportion of the working population, who were not employed, however, fell to 4.3%. It was the lowest jobless rate since May 2001.
China is on the hook to report its closely-watched Manufacturing Purchasing Managers Index for June. Last time it came in at 49.6, which would suggest contraction. Services, on the other hand, have been robust. The reading in June was the highest since January.
Unemployment in the Eurozone has been falling. But at 9.3% it is still worryingly high. The jobless is also unevenly distributed. In Greece, it was 23.2%, while in Germany it was just 3.9%. The Eurozone will report its latest unemployment numbers on Monday.
And finally, Tuesday is Independence Day in the US. The New York Stock Exchange will be closed. So, world markets will have to fly solo until they get back to work.