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5 Things to Watch on the Economic Calendar This Week

Published 05/01/2016, 04:01 AM
Updated 05/01/2016, 11:01 AM
© Reuters.  5 Things to Watch on the Economic Calendar In The Week Ahead

Investing.com - In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report for April to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.

There is also ISM manufacturing data on Monday and ISM services on Wednesday. In addition, there are more than a half-dozen Fed speakers on tap for the coming week as traders search for more clues on the timing of the next U.S. rate hike.

Elsewhere, market players will also be looking out for data on China's manufacturing sector due on Tuesday, amid ongoing concerns over the health of the world's second biggest economy.

Outside the G7, traders will be awaiting a monetary policy announcement from the Reserve Bank of Australia on Tuesday.

Ahead of the coming week, Investing.com has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.

1. U.S. nonfarm payrolls report

The U.S. Labor Department will release its April nonfarm payrolls report at 12:30GMT, or 8:30AM ET, on Friday.

The consensus forecast is that the data will show jobs growth of 200,000 last month, following an increase of 215,000 in March, the unemployment rate is forecast to hold steady at 5.0%, while average hourly earnings are expected to rise 0.3% after gaining 0.3% a month earlier.

An upbeat employment report would help support the case for the Federal Reserve to gradually tighten monetary policy this year.

2. U.S. ISM PMI surveys

The U.S. Institute of Supply Management is to release data on April manufacturing activity at 14:00GMT, or 10:00AM ET, on Monday. The gauge is expected to inch down 0.4 points to 51.4. Anything above 50.0 signals expansion.

Meanwhile, the ISM is to report on April service sector activity on Wednesday, amid expectations for a modest increase.

3. Fed speakers

Market players will pay close attention to a number of speeches from Federal Reserve officials during the week to judge the balance of opinion among policymakers on the prospect of further rate hikes.

The Fed speakers start Sunday with New York Fed President William Dudley, the official viewed as most closely aligned with Fed Chair Janet Yellen. On Monday, San Francisco Fed President John Williams will speak at a public event.

Tuesday sees Cleveland Fed President Loretta Mester and Atlanta Fed President Dennis Lockhart take the stage, followed by Minneapolis Fed President Neel Kashkari on Wednesday.

On Thursday, Atlanta Fed's Lockhart, Dallas Fed President Rob Kaplan, St. Louis Fed President James Bullard and San Francisco Fed's Williams are all due to participate in a panel discussion titled "International Monetary Policy and Reform in Practice" at the Hoover Institute conference.

4. China manufacturing PMIs

China is to publish results of the Caixin manufacturing index at 1:45GMT on Tuesday, or 9:45PM ET Monday. It is seen rising to 49.9 in April from 49.7 in March

The official China's manufacturing purchasing managers' index published Sunday dipped to 50.1 last month from 50.2 in March, compared to expectations for a reading of 50.4.

5. Reserve Bank of Australia rate decision

The RBA's latest interest rate decision is due on Tuesday at 4:30GMT, or 12:30AM ET. Most economists expect no policy change, while some believe the central bank can surprise with a 25 basis point rate cut in an effort to boost inflation and spur economic activity.

Stay up-to-date on all of this week's economic events by visiting: http://www.investing.com/economic-calendar/

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