Noises and signals: Where’s the economy heading this week?
WEEKLY MARKET COMMENTARY |
Investors will likely continue to debate whether the soft April employment report was more noise than signal as a light week of economic data and policy rhetoric will probably set the stage for a choppy week in asset markets, despite the fact that a June Federal Reserve hike is likely now off the table. Following six months of weak corporate earnings and rising policy uncertainty in the United States surrounding the upcoming elections, these challenges were likely behind the slower pace of hiring. In the U.S. fresh data on labor flows, initial claims retail sales, consumer confidence, wholesale inflation and import prices will be published. Six Fed speakers will address markets next week including San Francisco Fed President John Williams who is something of a bellwether on where the Federal Open Market Committee’s policy path is heading. The U.S. Treasury will issue $24 billion in three-year notes on Tuesday, $23 billion in 10-year bonds on Wednesday and $15 billion in 30-year bonds on Thursday.