This Week Focus Point 23-27 May 2022

This Week Focus Point 23-27 May 2022

The earnings reports from retailers like Costco, Macy’s, Nordstrom, and Best Buy will be the main focus for investors next week as they look for signs that the stock market has hit bottom. Flash PMI surveys for major economies and personal spending and income for the US are important data to keep an eye on. Also, the minutes from the Federal Reserve’s meeting in May will be released, and the central banks of New Zealand, South Korea, Indonesia, and Turkey will decide on monetary policy.

Costco, Macy’s, Nordstrom, Best Buy, Zoom, and Nvidia will all report earnings in the United States. Also, everyone will be looking at the FOMC minutes on Wednesday. Investors want more proof that the Fed will raise rates by another 50 basis points next month and in July. On the data front, both household consumption and PCE inflation are likely to slow down, while flash S&P Global PMIs are expected to drop this month. Other important reports include the second estimate of GDP growth, corporate profits, the final reading of Michigan consumer sentiment, the Chicago Fed National Activity index, the Richmond Fed Manufacturing Index, new and pending home sales, and durable goods.

In other parts of the United States, it will be interesting to keep an eye on Canada’s retail, wholesale, and manufacturing sales; Mexico’s mid-month inflation numbers, retail sales, trade, and final GDP growth estimates; and Brazil’s mid-month CPI reading.

In Europe, everyone will be looking at the flash S&P Global PMI surveys for the Eurozone, the UK, Germany, and France. Both the manufacturing and service sectors are expected to slow down because of the war in Ukraine and the fact that the recovery from the pandemic is starting to fade. Also, the Germany Ifo business climate index is expected to go down again in May after recovering from a 14-month low last month. The Gfk consumer index should show a slight rise in confidence after hitting a record low in April. Other important data includes the final GDP numbers for Germany’s first quarter, the UK’s public sector net borrowing, France’s unemployment rate, business and consumer surveys from France and Italy, and Turkey’s business morale. Also, the Central Bank of Turkey is likely to keep rates the same when it meets on Thursday, even though inflation is expected to speed up even more after hitting 70% in April.

In Japan, flash Jibun Bank PMIs will show how the economy did in May, and Tokyo CPI numbers will likely show that inflationary pressures are still going up. China is likely to report its industrial profits for the first four months of the year in April. This will give a new look at how partial and full lockdowns, production and spending disruptions have affected the country. In other parts of Asia, the central banks of Indonesia, South Korea, and Pakistan will make decisions about money. South Korea is expected to raise rates by another 25 basis points, while the Bank of Indonesia is likely to keep borrowing costs the same. Singapore, Malaysia, and Hong Kong’s inflation rates will also get a lot of attention.

In Australia, traders will also react to the Labor team’s win in the parliamentary elections. Flash PMI numbers, retail sales, and investment-related indicators, such as capital spending, will be interesting to keep an eye on.