World week ahead: US jobs data to show further growth
US Federal Reserve expects further expansion in the economy.
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US employment data and an OECD report on the global economic outlook dominate a holiday-shortened week.
Markets are closed today in the US for Memorial Day and in the UK for the Spring bank holiday.
Economists expect US jobs probably increased around 160,000 in May. These figures are due late in the week and are forecast to be on a par with the previous month’s moderate advance and held back in part by a strike at Verizon Communications.
The rise is likely to firm up a rate rise by the US Federal Reserve. Its next policy meeting is June 14-15 and last Friday chairwoman Janet Yellen signalled the rise will be within months if the US economy keeps gaining strength.
Other US data due this week include personal spending, which probably increased in April at the fastest pace in almost a year.
By contrast, US manufacturing probably barely expanded in May as lacklustre overseas demand and limited business investment continue to hobble the industry.
ECB to hold rate at zero
The European Central Bank probably will keep its benchmark rate unchanged at zero at a meeting in Vienna while issuing a new quarterly forecast that will signal whether the bank is getting closer to its inflation target.
Also in Vienna mid-week, ministers of the Organisation of Petroleum Exporting Countries (Opec) will meet to discuss oil supply and demand.
Opec members contributes about 40% of the world’s oil supply, which has tightened recently and sent prices to around $US50 a barrel – the highest this year.
The Organisation for Economic Co-operation and Development (OECD) presents its economic outlook on Wednesday and large oil producer Brazil issues its first quarter GDP report.
It is likely to show the biggest annual decline in 25 years, given low export commodity prices and that nation’s political instability with the impeachment of its president.
This has depressed consumer demand and dried up business investment in South America's largest economy.
Nevil Gibson
Mon, 30 May 2016
Mon, 30 May 2016
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World week ahead: US jobs data to show further growth
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