As last week ended on a high for the US with the release of strong Non Farm Payrolls Data, the upcoming week looks interesting to say the least.
Despite any major economic data releases on the scale of the NFP scheduled in the economic calendar, next week has plenty to keep the markets busy and investors focused.
Undoubtedly, the highlight of the week and the event which will be most keenly watched is the G7 summit hosted by Canadian Prime Minister Justin Trudeau in Quebec. Last week, the US imposed fresh 25% tariffs on steel and 10% tariffs on aluminum imported from Canada, the European Union and Mexico. In a rare show of unity, the six other members of the G7, issued a statement requesting that U.S. Treasury Secretary Steven Mnuchin conveys their “unanimous concern and disappointment” regarding the tariffs to President Trump. However, top of the agenda is sure to be the discussions between the world’s two largest economies – the US and China and whether or not the trade war will escalate or be taken down a notch or two.
Following a strong end to last week with the release of better than expected data showing UK manufacturing growth , attention turns to Tuesday’s UK Services PMI data. The services sector is integral to the UK economy, the world’s fifth largest economy. Market forecasts are for the UK services PMI to edge higher to 52.9 from Aprils reading of 52.8. Readings above 50 indicate growth, whilst readings below 50 indicate contraction.
The U.S. Commerce Department is set to release April’s international trade data on Wednesday, and it will be watched closely by the markets fearing an escalation and an all out global trade war. The US deficit has been forecast to widen to $50.0 billion, from the $49.0 billion recorded in March.