Macro data, global cues to guide markets this week, say analysts
Global markets are set to be guided by macroeconomic data this week, with investors keeping a close eye on the release of key economic indicators from the United States and China.
Analysts say the release of the U.S. nonfarm payrolls report on Friday could be the most important data point of the week. The report is expected to show that the U.S. economy added about 1.5 million jobs in August, which would be the largest monthly gain since the coronavirus pandemic began. The report will also provide insight into the health of the labor market and the overall economic recovery.
In addition, investors will be watching for the release of U.S. manufacturing and services PMI data on Monday and Wednesday, respectively. The data will provide an indication of the health of the manufacturing and services sectors, which are two key drivers of the U.S. economy.
Meanwhile, investors will be looking to China for clues on the global economic recovery. China is set to release its official manufacturing and services PMI data on Wednesday, which will provide an indication of the health of the Chinese economy. The data is expected to show that the Chinese economy is continuing to recover from the coronavirus pandemic.
On the political front, investors will be watching to see if the U.S. and China can reach a trade agreement. Both countries have been engaged in a trade war for over a year, and any progress on a deal could be a positive for global markets.
Finally, investors will be keeping an eye on the U.S. Federal Reserve’s policy meeting on Wednesday. The meeting will be closely watched for any hint of a shift in the central bank’s monetary policy stance.
Overall, analysts say that macroeconomic data and global cues will be the main drivers of the markets this week. Investors will be closely watching for any signs of progress in the global economic recovery, as well as for any changes in the U.S. Federal Reserve’s policy stance.