Financial Market Preview for May 11 -15

The recent NFP report was inline with market expectations but did present downward revisions for previous months. The aftermath of this report will continue to resonate in the markets in the coming days. Besides this labor market update, here are some of the main reports and events that will unfold this week: U.S. PPI, BOJ’s Euro groups meetings, U.S. JOLTS, China’s new loans, BOE rate decision, U.S. retail sales, Great Britain Claimant Count Change, U.S. consumer sentiment, China’s  industrial production, EU GDP for Q1, and Canada’s manufacturing sales . So let’s review the economic calendar for the week of May 11th to 15th.  

(All times GMT):

Monday, May 11th

12:00 – BOE Rate Decision & Asset Purchase Plan: Bank of England will release its basic rate for May 2015; the MPC will also announce of any changes to its asset purchase pogrom; BOE’s interest rate are still set at 0.5% and the asset purchase plan at £375 billion, as of the previous month; considering the UK elections just ended, it’s less likely for the Bank to make any changes so soon after the elections;

All Day – Euro-group Meetings: These meetings are held in Brussels and include meetings among Euro-group President, Finance Ministers from euro area member states, the Commissioner for economic and monetary affairs, and the President of the European Central Bank;

Tuesday, May 12th

09:30 – Great Britain Manufacturing Production: This report will present the annual rate of GB’s manufacturing production for March; in the last report regarding February 2015 the index rose by 0.4%; this time, the estimates are for 0.3% bump in March;

Tentative – China New Loans: According to the recent monthly report, the total loans rose to 1,180 billion Yuan; this report is another indicator for China’s economic progress; the current expectation are for another modest increase in the balance;

15:00 – U.S JOLTS Job Openings: The Bureau of Labor Statistics will publish its monthly report on the U.S number of job openings for April, excluding the farming industry; in the last update regarding March, the number of jobs opening rose to 5.13 million; current market predictions are for the number to increase again to 5.21 million;

Tentative – Australian Annual Budget Release: this report will outline the government budget of Australia for 2015; if there will be a rise in the budget deficit it could have an adverse effect on the Aussie dollar;

All Day – ECOFIN Meetings: ECOFIN is the Euro zone’s broadest financial decision making body. The meetings among EU Finance Ministers will revolve around the latest economic developments in the Euro zone may include talks about the deflationary pressures, debt problems and high unemployment;

Wednesday, May 13th

00:50 – Japan’s Current Account: This report will present the changes in the difference between imported and exported goods, services, and income flows. In the last monthly report, the surplus in the current account reached 0.60 trillion yen;

03:00 – China’s Industrial Production: According to the recent monthly update, China industrial production expanded at an annual rate of 5.6% — lower than in the previous month; the growth rate is estimated to bounce back — current estimate is for a growth rate of 6.1%;

07:00 –EU, German and French First Quarter GDP 2015: In the fourth quarter of 2014, Germany’s economy grew by 0.7%. The progress of the German economy is likely to impact the future of ECB monetary policy; if the growth rate remains low, this may drag down the Euro; currently, the market expects a 0.5% gain in the first quarter;

09:30 – Great Britain Average Earnings Index 3m/y: This report presents the changes in the price businesses and the government pays for labor force; in the last report, this index grew by 1.7%; current market estimates are for the index to remain at the same rate;

09:30 – Great Britain Claimant Count Change: As of the previous report, the number of unemployed in GB fell again by 21K; the rate of unemployment inched down to 5.6%;

10:30 –BOE Governor Carney Speaks: The Governor is expected to hold a press conference about the inflation letter, in London;

10:30 –BOE Inflation Report: Bank of England will publish its quarterly report that includes the bank’s inflation forecast for 2015and 2016;

13:30 –U.S. Retail Sales Report: This monthly report refers to April; in the last report regarding March, retail sales rose by 0.9% (month-over-month); core retail increased by 0.4%; this report also shows the developments in U.S’s gasoline retail sales, which could provide some insight regarding the progress in demand for gasoline; current outlook is for a 0.4% gain in core retail sales in April;

15:30 – U.S Crude Oil Stockpiles Weekly update: The EIA (Energy Information Administration) will release its weekly report on the U.S oil and petroleum stockpiles for the week ending on May 8th;

Thursday, May 14th

13:30 – U.S. Jobless Claims Weekly Report:  This weekly report will pertain to the changes in the initial jobless claims for the week ending on May 8th; in the latest report, jobless claims slipped to 265K; the expectations are  for this number to slightly rise to 271K;

13:30 – U.S. Producer Price Index: This report shows the inflation rate from the producers’ side; it will refer to April 2015. In the recent report regarding March, this index for finished goods inched up by 0.2% compared with the previous month’s level; the core PPI also rose by 0.2%; current estimates are for the PPI to presents a modest gain of 0.1% in the upcoming report;

15:30 – EIA U.S. Natural Gas Storage: The EIA weekly update of the U.S. natural gas market will refer to the recent changes in natural gas production, storage, consumption and rates as of May 8th;

Friday, May 15th

13:30 – Canada Manufacturing Sales: In the recent report regarding March 2015, manufacturing sales fell again by 1.7%; current expectations are for a 0.3% gain;

14:15 –U.S Industrial Production: This report will show the changes in the U.S industrial production during March; as of February, industrial production slipped by 0.6%;

14:55 – UoM Consumer Sentiment (preliminary): University of Michigan will release its preliminary consumer sentiment monthly report; this survey could offer information vis-à-vis the recent developments in U.S consumers’ sentiment; According to the recent report, the sentiment index rose to 95.9;

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