The new trading week is likely to be particularly exciting in the middle of the week with new US consumer price data. Investors should also keep a close eye on developments in the trade dispute between the US and China. High-ranking representatives from both camps are expected in London today (Monday).
Representatives from Washington and Beijing to meet in London on Monday
At the start of the week, investors around the globe are looking for possible positive signals in the trade dispute between the world's two largest economies. In London, Vice Premier He Lifeng, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, among others, are expected to speak on behalf of Beijing and the USA. Investors are likely to be looking for progress and thus signs of easing in the ongoing tariff conflict.
Dispute between Trump and Musk as a potential negative factor
At the same time, the recent feud between Donald Trump and Elon Musk could continue to cause uncertainty. The US President recently warned of "very serious consequences" if the Tesla boss were to support the Democrats in the future. "If he does, he will have to pay the price," said Trump. Last week, the Republican had already threatened financial consequences for his companies such as Tesla and SpaceX.
Musk and the Democrats reject Trump's comprehensive tax and spending bill. The package in question is considered to have triggered the dispute. While Musk is calling for spending cuts to reduce the budget deficit, Trump's plans would further increase the US debt.
US inflation could pick up again - nervousness likely to increase ahead of Wednesday's publication
US inflation data is on the agenda for Wednesday afternoon (14:30). In addition to the development of consumer price data, investors are likely to keep an eye on core inflation. Economists expect the inflation rate, including the drivers energy and food, to be 2.5% compared to the same month last year, after 2.3% in April. The core inflation rate is expected to reach 2.9% in the same period (previously: 2.8%).
US producer prices expected on Thursday - consumer sentiment data (Uni Michigan) rounds off the trading week
US producer prices will also be monitored for monetary policy clues later in the week. This data is expected on Thursday at 14:30.
Preliminary consumer sentiment data from the University of Michigan will round off the trading week from an economic calendar perspective (16:00).
In the reporting season, latecomers from the second and third tiers present their results for the past financial quarter. In addition to GameStop (Tuesday), Oracle (Wednesday) and Adobe (Thursday) are expected.
Dow Jones Industrial Average Index
Source: TradingView
