19, May 2017

Weekly Outlook: May 22 - May 26

Tuesday

Europe: The data front starts to build up with key economic data from Germany. The gross domestic product for the first quarter will be available as of 06:00 GMT, with expectations for a 0.6 percent quarterly build and a 1.7 percent expansion year-over-year. Business expectations and lfo business climate index for May are due at 08:00 GMT. Attention will also be directed to Bank of England Governor Mark Carney report on inflation against the UK’s Parliament Treasury Committee.

United States: New home sales for April are scheduled at 14:00 GMT, with analysts pointing at 611.000 units, down by 10.000 from the previous month reading.

Wednesday

Europe: Germany continues to set the tone with its GfK consumer climate for June at 06:00 GMT. Preliminary readings on the German manufacturing and services PMIs for May will be released as of 07:30 GMT, with expectations standing at 58.0 and 55.5 respectively. Later on, the Eurozone will present those same reports at 08:00 GMT, with 56.7 and 56.5 seen. Markit will also release its composite PMI. Analysts are seeing no change from the previous month 56.8.

United States: Mid-week comes loaded in the US session. Markit’s manufacturing and services PMIs for May are due at 13:45 GMT, with 53.0 eyed in both cases. In a separate report, the National Association of Realtors will show existing home sales for April, expected to notch down to 5.68 million from a prior 5.71 million reading. Investors will also be focusing on crude oil inventories from the US Energy Information Administration, to be available at 14:30 GMT. Last but not least, the Federal Reserve will present minutes from its latest monetary policy meeting. Market participants will be looking for hints on the timing of the next Fed rate hike, although expectations for a move in June continued to decline over Trump’s political scandal.

Thursday

Europe: The British Bankers' Association will present Mortgage Approvals as of 08:30 GMT. The report gauges the number of new mortgages approved by banks last month. Also in the United Kingdom, a preliminary gross domestic product for the first quarter is set to be available at that same hour.

United States: Goods trade balance for April is set for release at 12:30 GMT. According to the Bureau of Economic Analysis, trade deficit stood at $64.23 billion in March.

Asia: Japan is expected to release its national core CPI for April and Tokyo’s core CPI for May. Both reports are coming at 23:30 GMT, which corresponds to Friday’s Asian session already.

Friday

United States: Heavy data is ahead for the last session in US markets, with durable goods orders for April, forecasted at minus 1 percent, and a preliminary Q1 GDP, seen at 0.8 percent, scheduled at 12:30 GMT. The University of Michigan is preparing consumer expectations and sentiment for May as of 14:00 GMT.