Gloomy outlook will be put to test by key economic data
WEEKLY MARKET COMMENTARY |
Investors remain unconvinced that the U.S. economy will pick up steam in the current quarter. This lack of optimism conveniently ignores the improvement in consumption to close out the first quarter and an increase of 2.8 percent in private sector wages, well above the 1.7 percent cyclical average. That gloomy outlook will be put to the test this week when several high profile labor market indicators, service sector, manufacturing and credit demand data are published.
In addition, the U.S. Federal Reserve will send out six speakers to address the economic outlook and discuss monetary policy this week. Most prominent of those speakers will be Federal Reserve Chair Janet Yellen, who will participate on a panel with International Monetary Fund Managing Director Christine Lagarde on Wednesday.