Henk Potts' Market Review
Henk Potts – Global Investment Strategist
Henk Potts is Director of Global Research & Investments for Barclays Wealth and Investment Management.
These are Barclays’ views; however, they are not a guarantee of future events – which nobody can reliably predict.
Weekly Review – Monday 29 May
Henk discusses the stories that dominated the headlines and moved the market over the previous week’s trading and also highlights the key events that are likely to dominate during the course of the week ahead.
The below content has been taken from Henk’s weekly podcast. If you’d prefer to listen to this, you can do so via Stockbrokers TV.
What are the key events and data releases investors should be watching out for this week?
Well let’s start off in the United States as we often do. No doubt the big number of the week of course will be the May employment report from the US, which we get on Friday. Where we look for the US economy to create 175,000 jobs, anticipate the unemployment rate in the United States will hold steady at 4.4%, and forecast average hourly earnings will increase by 3/10ths of 1%. In terms of other data points to watch out for in the United States, we look for the May ISM manufacturing index to print at 55. We project that April headline price index grew by 2/10ths of 1%, core PCE to rise by 1/10th of 1%.
In Europe for the euro area we expect April M3 growth rate remained unchanged at 5.3% year-on-year, April loans to the private sector increased by 2.8%. We estimate that the flash HICP inflation will drop to 1.4%, and core to come in at 1%. And we expect that May final PMI for the euro area will print at 57.
In terms of the UK, we project that April consumer credit decreased to £1.4bn, estimate that April mortgage approvals and lending slowed down, and expect the GFK consumer confidence survey to suffer further from here – so quite a lot of economic data for the market to digest this week.
And which European companies are reporting results this week?
Well contrasting that with a relatively quiet week in terms of companies reporting. On Tuesday we get results from Ryanair. Wednesday we get numbers from IG Group, from Metro and Telford Homes. Finishing off the week in terms of the big numbers we get figures from First Group and Johnson Matthey on Thursday.
I hope you’ve found this update interesting and I wish you every success for the trading week ahead.