Investing.com -- this is an important week for investors in terms of US data, culminating in Friday's release of the November employment report. Market sentiment is more likely to be driven by news about the timing of vaccine deliveries and concerns about stronger measures to contain the spread of the virus after Thanksgiving.
Here are 5 events relevant for traders of forex, stocks and other financial instruments in the coming week.
COVID-19 vaccination for health care coming soon?
The announcement this month of three promising candidates for the coronavirus vaccine helped keep the Dow Jones above 30,000 points.
On Tuesday, the US Department of health plans to hold an urgent meeting to authorize the food and Drug Administration to vaccinate health workers and people in long-term care facilities. It is a vaccine developed by Pfizer Inc (NYSE:NYSE:PFE) and its German partner BioNTech se (Nasdaq:bntx), which is awaiting approval.
The announcement of the meeting indicates that the FDA may be close to approving the vaccine for distribution, at least for the most vulnerable groups.
The United States recorded its 12 millionth case of COVID-19 on November 21, and health experts have warned that Thanksgiving travel is likely to increase the number of cases significantly.
2. NFP report on US jobs
Fears that a surge in new cases and increased measures to contain the spread of the virus could jeopardise the recovery in the labour market. This means that on Friday the figures on non-farm payrolls will be in the spotlight.
The report is expected to show the seventh consecutive month of job growth, but the consensus is that only 500,000 jobs have been created. The unemployment rate is expected to fall from 6.9% to 6.8%, still well above the 4.5% recorded in March.
The economy added 638,000 jobs in October, the smallest gain since the recovery began in May.
3. Powell and Mnuchin face to face
Fed Chairman Jerome Powell and Treasury Secretary Steven Mnuchin are scheduled to testify before the Senate Banking Committee on Tuesday and again a day later before the House Financial Services Committee.
They will discuss the CARES act, according to which Congress in March allocated $ 2 trillion in pandemic aid to the US Treasury, a large part of which was intended to support the Fed's loan programs.
Earlier this month, Mnuchin unexpectedly asked the Fed to return unused funds to the treasury and refused to extend the Fed's credit programs, which the central bank said were necessary support for the economy, which is experiencing its worst crisis in a century.
The decision puts the outgoing Trump administration at odds with the Fed and will increase economic tensions as president-elect Joe Biden prepares to take office.
OPEC and its allies, including Russia, the group known as OPEC+, were due to increase oil production by 2 million barrels per day from January to ease record supply cuts that were imposed in the context of falling prices at the beginning of the year.
Energy analysts say the plans are now delayed by at least three months when OPEC + meets on November 30 and December 1.
While oil prices hit an eight-month high near $ 50 a barrel, further travel restrictions due to the coronavirus pandemic, continued high inventory levels and increased production from Libya are limiting gains.
5. Euro area inflation data
Data on Tuesday are expected to show that inflation in the euro area fell again in November. Economists predict a decline of 0.3% year on year.
The European Central Bank has already said that it expects inflation to average -0.2% year-on-year in the fourth quarter, but the fourth consecutive month of negative price dynamics could trigger alarm. ECB chief economist Philip Lane recently warned against tolerating low inflation.
The data is expected to highlight the need for more stimulus ahead of the ECB's next meeting in December, as analysts are already looking for an extension of its bank bond-buying programme and cheap bank lending.
Investors will be closely watching the talks on the CARES bill from Jerome Powell and Steven Mnuchin. OPEC is expected to delay plans to increase oil production. Meanwhile, inflation data in the euro area is expected to confirm expectations that the European Central Bank will intensify its stimulus measures at its next meeting.
Here are 5 events relevant for traders of forex, stocks and other financial instruments in the coming week.
COVID-19 vaccination for health care coming soon?
The announcement this month of three promising candidates for the coronavirus vaccine helped keep the Dow Jones above 30,000 points.
On Tuesday, the US Department of health plans to hold an urgent meeting to authorize the food and Drug Administration to vaccinate health workers and people in long-term care facilities. It is a vaccine developed by Pfizer Inc (NYSE:NYSE:PFE) and its German partner BioNTech se (Nasdaq:bntx), which is awaiting approval.
The announcement of the meeting indicates that the FDA may be close to approving the vaccine for distribution, at least for the most vulnerable groups.
The United States recorded its 12 millionth case of COVID-19 on November 21, and health experts have warned that Thanksgiving travel is likely to increase the number of cases significantly.
2. NFP report on US jobs
Fears that a surge in new cases and increased measures to contain the spread of the virus could jeopardise the recovery in the labour market. This means that on Friday the figures on non-farm payrolls will be in the spotlight.
The report is expected to show the seventh consecutive month of job growth, but the consensus is that only 500,000 jobs have been created. The unemployment rate is expected to fall from 6.9% to 6.8%, still well above the 4.5% recorded in March.
The economy added 638,000 jobs in October, the smallest gain since the recovery began in May.
3. Powell and Mnuchin face to face
Fed Chairman Jerome Powell and Treasury Secretary Steven Mnuchin are scheduled to testify before the Senate Banking Committee on Tuesday and again a day later before the House Financial Services Committee.
They will discuss the CARES act, according to which Congress in March allocated $ 2 trillion in pandemic aid to the US Treasury, a large part of which was intended to support the Fed's loan programs.
Earlier this month, Mnuchin unexpectedly asked the Fed to return unused funds to the treasury and refused to extend the Fed's credit programs, which the central bank said were necessary support for the economy, which is experiencing its worst crisis in a century.
The decision puts the outgoing Trump administration at odds with the Fed and will increase economic tensions as president-elect Joe Biden prepares to take office.
OPEC and its allies, including Russia, the group known as OPEC+, were due to increase oil production by 2 million barrels per day from January to ease record supply cuts that were imposed in the context of falling prices at the beginning of the year.
Energy analysts say the plans are now delayed by at least three months when OPEC + meets on November 30 and December 1.
While oil prices hit an eight-month high near $ 50 a barrel, further travel restrictions due to the coronavirus pandemic, continued high inventory levels and increased production from Libya are limiting gains.
5. Euro area inflation data
Data on Tuesday are expected to show that inflation in the euro area fell again in November. Economists predict a decline of 0.3% year on year.
The European Central Bank has already said that it expects inflation to average -0.2% year-on-year in the fourth quarter, but the fourth consecutive month of negative price dynamics could trigger alarm. ECB chief economist Philip Lane recently warned against tolerating low inflation.
The data is expected to highlight the need for more stimulus ahead of the ECB's next meeting in December, as analysts are already looking for an extension of its bank bond-buying programme and cheap bank lending.
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