USA - 5 Things To Watch In The Financial Markets, The Weeks Ahead

 USA - 5 Things To Watch In The Financial Markets, The Weeks Ahead 

Friday's job report and the Minutes of Federal Banks are the highlighter of the week ahead.  The USA market is embarking on the uncertain third quarter after the tightening monetary policy started.

Australia is planning to increase the interest rate by 50 Bps. 

US JOBS REPORT:

Economic Data mentions that United States market is slowing down amid tightening monetary policy by the Federal Reserve. Investors will be watching the non-farm payroll report to know how labor market is functioning. 

Economists expect that 270,0000 employment had been added in June, 2022, slowing from 300,000 in the previous months. Unemployment ratio will be steady at 3.60% providing that stron demand still exists in the market. Average Hourly Earnings are expected to be increasing by 5% on Year-on-year basis.

A weaker report will exaggerate that economy is already on the path of recession. This will trigger the interest rate of 75 Bps In July,2022. 

This will give the future path of how the FED will take action on behalf of interest rate and recession.

Meanwhile, European Bank will provide a minutes of 50 Bps hike, which will be the first hike of EU in this year as inflation is running above 8% in all countries. 

US is also planning to publish date on JOLT JOB OPENINGS for May on Wednesday, where number of vacancies will slow slightly to 11 Million from 11.4 Million. This is due to deficiency of labor available to take up key positions, which will surely increase the wage rate of employees. 

US is also going to publish ISM SERVICES PMI forJune, whereas they have already published ISM MANUFACTURING PMI, shows the slowdown in both new orders input prices and data on factory orders, initial jobless claims and consumer credit. 

RBA RATE HIKE:

Reserve Bank Of Australia are planning to increase Interes ratesby 50 Bps. The reason being the high inflation which is hurting the economy. The main reason is that, Australian Dollar is considered weaker along with soaring power and labor costs. Australian trading partners like Russia, which is engaged in War With Ukraine whereas China is Fighting COVID lockdowns. 

This will be paving the way of market ahead.