In addition to the eagerly awaited meeting between Trump and Putin, the publication of US inflation data is likely to determine the weal and woe of the stock market week. Hopes for further signals of monetary easing could boost the stock markets. It is also important to keep an eye on the ongoing reporting season.
Investors likely to bet on rapprochement between the US and Russia and peace in the Ukraine conflict
The meeting scheduled for Friday between US President Donald Trump and Vladimir Putin in the US state of Alaska is likely to cast its shadow in the coming days. It remains unclear whether the Ukrainian president will also be present. Market participants are likely to be hoping in particular for a rapprochement between the two economies and peace in the Ukraine-Russia conflict.
Economists expect inflation to rise - US interest rate cut fantasies could be dampened
On Tuesday, US inflation data in particular is likely to provide important impetus (14:30). Economists expect price pressure in the world's largest economy (compared to the same month last year) to be 2.80 percent, slightly higher than in the previous month (2.70 percent). The core rate of inflation, which excludes the drivers energy and food, may also have risen by 0.1 percentage points to 3.0%.
US producer prices could also send out monetary policy signals - Further economic data to watch
US producer prices, which are expected on Thursday (14:30), are also likely to be important.
As in the previous week at the same time, the weekly initial claims for US unemployment benefits are also worth keeping an eye on, after the official US job data (non-farm payrolls) were strangely weak at the beginning of the month.
Monetary policy could also be stimulated by an expected speech by Thomas Barkin from the Richmond Fed (20:00).
From the point of view of the economic calendar, things are likely to get exciting again on Friday with the publication of retail sales (14:30) and consumer confidence (University of Michigan) at 16:00.
US reporting season: second and third-tier companies present figures
Various companies from the second and third tiers will be presenting their figures for the past financial quarter in the coming hours and days. AMC-Entertainment (ISIN: US00165C3025) is reporting today, Cisco Systems (ISIN: US17275R1023) on Wednesday and Applied Materials (ISIN: US0382221051) on Thursday.
Dow Jones Industrial Average Index
Source: TradingView
