The week ahead

A look ahead to the major events, economic releases and company news expected next week.

It has been another quick week, but one jam-packed full of news. Earnings season is in full flow, and tech stocks have been at the centre of it. Facebook and Apple were both able to appease investors, with the companies showing good progress. Meanwhile, US indices enjoyed a good winning streak, taking them back to highs not seen since the beginning of the month. As we look ahead, EUR/USD’s hold on $1.38 and GBP/USD’s progress above $1.68 become important areas to watch.

 

Economic reports

Monday

US pending home sales, Mar (3pm): The month-on-month figure is expected to bounce back with growth of 0.9%, from -0.8% in Feb. Market to watch: Dollar crosses

Dallas Fed manufacturing index, Apr (3.30pm): This survey of activity in the south-west is expected to rise to 6 from 4.9. Market to watch: Dollar crosses

Tuesday

UK Q1 GDP, first reading (9.30am): UK growth is forecast to accelerate to 3.2% for the first quarter, but the first reading will rely on incomplete data and will be subject to revisions. Market to watch: GBP/USD

German CPI, Apr (1pm): Year-on-year price growth in Germany is forecast to rise to 1.4% from 1%. Market to watch: EUR/USD

US S&P/Case-Shiller housing index, Feb (1pm): House price growth year-on-year in 20 major US cities is set to drop back to 12.9% in Feb from 13.2%. However, this data will be two months old so its value is limited. Market to watch: Dollar crosses

Wednesday

Japan industrial production, Mar (12.50am): Japanese inflation recently rose closer to the Bank of Japan’s 2% target. Industrial production is expected to rise to 7.2%. Market to watch: USD/JPY, Japan 225

German unemployment, Apr (8.55am): No change is forecast here, with the rate staying at 6.7%. Market to watch: EUR/USD

Eurozone CPI, Apr (9am): This is forecast to rise to 1% YoY from 0.7% Market to watch: EUR/USD

US ADP employment report, Apr (1.15pm): The prelude to non-farms starts here, with job numbers predicted to increase by 210K from 191K last month. Market to watch: US indices

US Q1 GDP (1.30pm): US growth is forecast to slow to 1.1% from 2.6% a year ago. Market to watch: Dollar crosses

US Chicago PMI, Apr (1.45pm): Manufacturing around Chicago is expected to grow to 56.5 from 55.9, moving further into expansion territory. Market to watch: US indices

Federal Open Market Committee (7pm): The Fed is not expected to make any changes in the rate of quantitative easing tapering here. No press conference is scheduled so the risk of unexpected comments is eliminated. Market to watch: All indices and FX

Thursday

China manufacturing PMI, Apr (2am): Manufacturing growth in China is expected to rise to 50.5, moving further into expansion territory. Market to watch: AUD/USD, FTSE 100

US weekly initial jobless claims (1.30pm): The weekly survey of first-time unemployment claimants. Market to watch: Dollar crosses

Friday

France, Germany, eurozone manufacturing PMI, Apr (8.55am – 9am): The surveys of manufacturing growth in the region will help gauge the strength of the eurozone economy. Market to watch: EUR/USD

UK construction PMI, Apr (9.30am): Construction is the smallest sector of the UK economy, so the impact of this PMI is limited. Market to watch: GBP/USD

Eurozone unemployment, March (10am): This is expected to drop to 6.6% from 6.7%. Market to watch: EUR/USD, Germany 30

US non-farm payrolls, Apr (1.30pm): The monthly employment report is forecast to see a growth of 210K from 192K last month. Market to watch: Everything!

 

Company announcements

Monday

Advent Software

Tuesday

BP, Whitbread, Shire, Redrow, Merck & CoeBay

Wednesday

Barclays, Ladbrokes, British American Tobacco, Shell

Thursday

BG Group, Lloyds Banking Group, Rolls-Royce Group, Schroders, ConocoPhillipsExxon Mobil, Kraft Food Group

Friday

InterContinential Hotels Group, Royal Bank of Scotland, Rexam, Chevron

 

(All times London time)

Here is a list of US stocks that can also be traded outside New York Stock Exchange trading hours of 2.30pm to 9pm.

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