ECB and OPEC outcomes, plus employment stats, set week's economic pace
WEEKLY MARKET COMMENTARY |
The week ahead will be defined by the rate decision out of the European Central Bank (ECB) meeting and the Organization of the Petroleum Exporting Countries (OPEC) meeting in Vienna, both on Thursday, and the all-important estimate of U.S. employment that will be published on Friday. Given that the ECB will be rolling out its corporate bond purchase and its targeted long-term refinancing operations in June, we do not anticipate any major policy announcements.
In Vienna, when the 169th meeting of OPEC takes place, we anticipate further discord between the Saudi delegation and the rest, thus there is a low probability of any curtailment in production to further boost oil prices. In the U.S., the Federal Reserve will send five speakers out to address markets and there is a heavy slate of first-tier economic releases that will provide fresh information on personal income and spending, inflation, national manufacturing activity, total vehicle sales, home prices and employment dynamics.