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© Reuters.
By Noreen Burke
Investing.com – The week following the US jobs report is usually one of the lightest months in terms of economic data and the week shortened by the upcoming holidays is no exception. Wednesday’s Federal Reserve meeting minutes could provide investors with information about the politicians behind the debate, a dark change that caused confusion in the market over the past month. The European Central Bank will also publish the minutes of its last meeting, while China will publish the ones that will see the inflation figures up close. And as the markets move into the second half of the year, investors are wondering if the amazing first half of the year may continue. Here’s what you need to know to start the week.
- Fed minutes
At the June meeting of the faith, when officials opened talks on the purchase of bonds and indicated that interest rate hikes could come earlier than planned, they will be released on Wednesday.
The minutes go by Friday’s non-farm payroll report. This showed that the U.S. created the most in 10 months in June, which indicated that it closed the second quarter strongly in the economy as reopening progressed.
The strong data did little to show that the strong recovery and wage hikes are beginning to undo the Fed’s simple monetary policy earlier than expected.
This dynamic looks set to continue to weigh on the market ahead of the Fed’s political meeting in July and its annual meeting in Jackson Hole, Wyoming, in August.
- ISM service data
Service industry activity will be released on Tuesday and is expected to grow strongly after reaching a record high in May, amid the reopening allowed by coronavirus vaccines. The report may also highlight ongoing labor cuts, as hiring continues to lag behind, prompting companies to offer higher wages to attract employees.
This issue will probably be followed up in the Wednesday – Job Opening and Work Figures – reports. A new record for employment is expected to emerge, but hiring remains behind because potential workers are unable or unwilling to take the job.
Investors will also be looking at data on Thursday’s jobless claims. Last week’s report showed that it had fallen to its lowest level since March 2020, when extensive blockades were put in place to slow the first wave of the pandemic.
- The second part
With the arrival of markets in the second half of 2021, investors are now wondering if this stunning first half can continue.
Although U.S. stock markets hold record highs, some market analysts have indicated signs of caution in certain areas of the market.
Concerns about the rapid spread of the COVID-19 Delta variant have raised concerns about travel and leisure values, as well as the yield on U.S. government bonds, among the concerns of a potentially more growing Fed.
In recent weeks, some investors have also noticed a concentration of profits in the market in fewer shares, and some believe it is a sign of declining confidence in the broad market.
Investors will focus on the second quarter earnings season and move forward with President Joe Biden’s infrastructure bill; which may continue to boost the stock market.
- ECB minutes
The ECB will publish its June policy meeting on Thursday. ECB monitors will also be on the lookout for a series of meetings with banks to review their monetary policy strategy in the coming weeks.
The bank wants to renew its inflation target (currently close to 2% but not exceeded) and aims to conduct a review by September.
On Wednesday, the German Eurozone headquarters will publish figures and the European Commission will publish updated data for the European Union.
- Chinese inflation
China will provide data on both and Friday. Market watchers will pay close attention to raw material costs, which are high commodity prices and whether these increases are being passed on to the consumer.
Prices in China and around the world are jumping, fearing that a wave of inflation would threaten global economic recovery if it continues.
–Reuters contributed to this report
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