Financial Calendar – Prime 5 Issues to See This Week

© Reuters

By Noreen Burke – It’s a big week for US data with the November job report released on Friday, but market sentiment will be more driven by news about the timing of vaccine distribution and concerns about more aggressive measures to contain the spread of the virus after Thanksgiving . Investors will be closely monitoring statements by Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin regarding the CARES Act in Washington. OPEC is expected to delay plans to increase oil production if it meets during the week. In the meantime, eurozone inflation data should cement expectations that the European Central Bank will step up stimulus measures at its next political meeting. Here’s what you need to know to start your week.

  1. Vaccination time

News of three promising coronavirus vaccine candidates this month helped raise the 30,000+, and investors will be closely following plans for the first launch.

U.S. health officials will hold an emergency meeting Tuesday to recommend that the Food and Drug Administration allow health professionals and people in long-term care facilities to be the first two groups to receive a vaccine developed by coronavirus Pfizer (NYSE 🙂 and German partner BioNTech awaiting approval.

The announcement of the meeting suggests that the FDA may be on the verge of approving distribution of the vaccine, at least to the most vulnerable groups.

The United States registered its 12 millionth COVID-19 case on November 21, and health experts have warned that traveling for Thanksgiving is likely to increase the number of cases significantly.

  1. Payroll outside of agriculture

Concerns that the sharply escalating number of new virus cases and widespread containment measures have undermined labor market recovery mean that non-farm payrolls will be closely watched on Friday in November.

The report is projected to see job growth for a seventh straight month, but the consensus predicts only 500,000 jobs will be added. The unemployment rate is expected to fall from 6.9% to 6.8%, still well above the 4.5% rate in March before much of the US economy stalled.

The economy created 638,000 new jobs in October. This was the lowest increase since the job recovery began in May.

The calendar also includes Tuesday’s ISM-PMI for manufacturing and the ISM-PMI for non-manufacturing, as well as the weekly report of first unemployment claims on Thursday.

  1. Powell and Mnuchin face each other

Fed Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will testify before the Senate Banking Committee Tuesday and the House Financial Services Committee a day later.

They will discuss the CARES bill, under which Congress provided the US Treasury Department with $ 2 trillion in pandemic aid in March, much of which was earmarked to support Fed loan programs.

Earlier this month, Mnuchin unexpectedly urged the Fed to return unused funds to the Treasury Department and declined to extend the Fed’s loan programs. The central bank said this was a critical setback for the economy, which is experiencing its worst downturn in a century.

The move has brought the outgoing Trump administration into conflict with the Fed and will add to economic burdens as President-elect Joe Biden prepares for office.

  1. OPEC meeting

OPEC and its allies, including Russia, a group called OPEC +, were expected to increase oil production by 2 million barrels a day from January to ease the record cuts in supplies that resulted in a price drop earlier this year implemented.

But when OPEC + meets on November 30th to December 30th. 1, energy analysts say these plans are now expected to be delayed for at least three months.

While prices have rebounded to an eight-month high near the $ 50 a barrel level, ongoing travel restrictions due to the coronavirus pandemic, still high inventory levels, and higher production from Libya are capping profits.

  1. Eurozone inflation data

Tuesday’s data is expected to show that euro zone inflation fell again in November. Economists expect a decline of 0.3% compared to the previous year.

The European Central Bank has already announced that inflation will average -0.2% year-on-year in the fourth quarter. However, a fourth straight month of negative price growth could sound alarm bells. The ECB’s chief economist Philip Lane recently warned against tolerating low inflation.

The data is expected to underscore the need for further stimulus ahead of the upcoming ECB political meeting in December. Analysts are already expecting an expansion of the bond purchase program of the banks and cheap loans for banks.

–Reuters contributed to this report

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