Economic Calendar - Top 5 Things to Watch This Week

Economic Calendar - Top 5 Things to Watch This Week

Investing.com  | May 24, 2020 19:12

Economic Calendar - Top 5 Things to Watch This Week

By Noreen Burke

Investing.com - The rush to develop treatments for Covid-19 is heating up, prompting investors to diversify bets in the healthcare sector and trade tensions between the U.S. and China are firmly back on the agenda. On the economic calendar, the weekly jobless claims report continues to be the main number to watch, given its timeliness. Federal Reserve Chairman Jerome Powell is to discuss the U.S. economy in an appearance on Friday and the Fed publishes its Beige Book on Wednesday. Meanwhile, the European Commission is to unveil its pandemic response plan and retail earnings are winding up. Here’s what you need to know to start your holiday shortened week.

  1. Covid-19 vaccine hunt heats up

Governments and investors are focusing their hopes on a vaccine as it’s unlikely economic activity can resume fully without one.

So the race is on and it has already driven up prices for some pharmaceutical stocks. Hopes for a treatment have sparked outsize rallies in the shares of companies such as Moderna (NASDAQ:MRNA) and Inovio Pharmaceuticals (NASDAQ:INO).

AstraZeneca (NYSE:AZN) has vaulted into the position of the most valuable British company after receiving a U.S. pledge for up to $1.2 billion for its experimental vaccine.

The U.S. also has vaccine development deals with Johnson & Johnson (NYSE:JNJ) and Sanofi (PA:SASY). But many others companies, both large and small, are in the race: Imperial College, Gilead Sciences (NASDAQ:GILD), Roche, China’s CanSino Biologics and India’s Glenmark to name just a few.

  1. Flare up in U.S.-China trade tensions

With the global economy in an unprecedented downturn, fears over the prospect of a renewed trade conflict between the worlds two largest economies are difficult to discount.

In the past week, U.S. President Donald Trump has ramped up his rhetoric against Beijing over its handling of the pandemic, the Senate passed a bill that could result in barring some Chinese companies from listing shares on U.S. stock exchanges and a retirement-savings plan for federal workers delayed plans to invest in some Chinese companies.

China’s proposal for a tougher national security regime in Hong Kong looks set to open a new venue for Sino-U.S. tension, with the U.S. already warning of a tough response.

  1. U.S. data, Fed view on economy

After Monday’s Memorial Day public holiday, the U.S. calendar is set for a busy week. Thursday’s weekly jobless claims report continues to be the highlight and will indicate whether there is any let up in layoffs as states continue efforts to reopen their economies.

Fed Chair Powell will appear in a webcast discussion on Friday to discuss the state of the economy and the central bank's efforts to stabilize it. The Fed publishes its Beige Book on Wednesday and revised figures on U.S. first quarter growth out earlier the same day will show if the economy suffered a bigger hit than initially reported. There will also be reports on consumer sentiment, durable goods and personal spending.

  1. Pivotal week for euro zone economic response plan

Clashes in the euro zone over how to handle the economic impact of the COVID-19 crisis raised fears for the bloc’s future, but a Franco-German proposal aimed at helping the worst-hit states represents a pivotal moment. The markets want to see details so all eyes will be on the European Commission this Wednesday when it presents its pandemic recovery plan.

Other events to watch this week include German Ifo data on Monday, which is expected to show that German companies remain pessimistic and what are expected to be some subdued inflation numbers for May.

European Central Bank President Lagarde and Chief Economist Philip Lane are both due to speak this week and they will likely reiterate the message that more action from governments in the form of fiscal stimulus will be needed to get the bloc’s economy back on track.

  1. NYSE floor to reopen, retail earnings wind down

The New York Stock Exchange trading floor is set to partially reopen after the Memorial Day holiday on Tuesday, over two months after it shut down amid widespread measures to control the spread of the coronavirus.

First quarter earnings season is continuing to wind down with retailers again the main companies reporting this week. Costco (NASDAQ:COST), Dollar General (NYSE:DG), Nordstrom (NYSE:JWN), Ulta Beauty (NASDAQ:ULTA) and Burlington Stores (NYSE:BURL) are among some of the companies reporting earnings.

--Reuters contributed to this report

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (South Africa) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.