June 07, 2021 – Last week, US Non-Farm Payroll data was weaker than expected at +559,000 vs an expectation of +650,000. This week, we take a look at Central Banks and the possibility of inflation.
Bank of Canada (BOC)
At its last meeting on April 21st, the Bank of Canada cut bond purchases from C$4 billion per week to C$3 billion per week.
The Markit Manufacturing PMI and the Ivey PMI (both for May) were strong. But the Canadian Dollar is strong as well, as Crude Oil approaches $70.
European Central Bank (ECB)
The ECB also meets this week at their June interest rate decision meeting. However, expectations are quite different from those of the BOC.
European manufacturing and services data were strong in May, while inflation has been moderate. The ECB has no intention of tapering.
Inflation data from China and the US will be highlights for this week. China’s CPI and PPI will be noted but will be a sideshow to the US CPI.
- Markets to Watch This Week: Nasdaq 100, US Dollar,BoJ and moreThere continued to be hesitancy in global market sentiment. Wall Street started off 2022 on a sour note, though the second week was less painful. Nasdaq 100 futures were little changed. This is as Dow Jones and S&P 500 futures declined about 0.8% and 0.3% respectively. European and […]
- Market Week Ahead: Inflation Data, Bitcoin, Powell Testimony, and moreEven though market sentiment started off 2022 on a sour note, there were clear winners and losers on Wall Street. Dow Jones futures declined about 0.1% this past week, while the tech-heavy Nasdaq 100 sank about 4.35% in the worst performance since February. The coming […]
- Market Week Ahead: Monetary Policy Meeting, Retail Sales, etc.The broad US dollar remained under pressure on Friday and will end this week on a bearish note as investors digest the Bank of England’s (BOE) unexpected interest rate hike and the European Central Bank’s (ECB) shift to a more hawkish attitude. Looking ahead […]
- Markets Week Ahead: Nasdaq 100, US Dollar, Gold, Euro, British Pound, Fed and moreMarket mood recovered this past week around the world. On Wall Street, the Nasdaq 100 and S&P 500 gained 3.82% and 3.65% respectively. Across the Atlantic, the Euro Stoxx 50 and FTSE 100 climbed 2.95% and 2.62% respectively. In the Asia-Pacific region, the Nikkei 225 climbed 0.89% while Australia’s ASX 200 jumped 4.05%. Volatility was crushed, […]
- Market Week Ahead: Omicron Concerns, Inflation Data, CryptoDevelopments around the Omicron coronavirus variant will continue to be the main driver of market sentiment in the week ahead and this news flow, together with a hawkish turn by the Federal Reserve, means Friday’s inflation data will be in the spotlight. […]