The geopolitical uncertainties in the Middle East conflict are likely to increasingly drive investors around the globe in the coming days. Following the US intervention in the conflict, concerns about a further escalation are likely to trigger further uncertainty. In addition to important US economic data, there is a whole series of scheduled Fed speeches to keep an eye on.
USA intervenes militarily in Middle East conflict - geopolitical tensions likely to increase
According to media reports, the US intervened in the recently escalated conflict between Iran and Israel on Saturday night and targeted three major nuclear facilities. In this context, geopolitical uncertainty is likely to persist and possibly curb risk appetite. It remains to be seen how long the legs of geopolitical exchanges will be this time. Even if signs of easing are possible from time to time in the meantime, the Middle East conflict is likely to continue to hover over investors' heads like a classic sword of Damocles.
Purchasing managers' publications ahead at the start of the week - focus on numerous Fed speeches
From the perspective of the economic data calendar, various purchasing managers await market participants on Monday afternoon, such as for the service, manufacturing and overall sectors for the USA (14:30).
Following the Fed's interest rate decision last Wednesday, a number of Fed representatives are also expected to address the public in the new trading week. On Monday at 16:00, for example, investors are likely to listen to speeches by Governor Michelle Bowman, Austan Goolsbee (Chicago/19:10) and Adriana Kugler (Governor/20:30) for monetary policy clues. On Tuesday, the likes of Beth Hammack (Cleveland/15:15pm, John Williams (New York/18:30pm) and Michael Barr (20:00pm) are expected.
On Tuesday and Wednesday at 16:00, Fed Chairman Jerome Powell will be holding a hearing.
Focus on US GDP on Thursday - Economic data could provide impetus
New data on the growth rate of gross domestic product (annualized) is likely to attract interest on Thursday (14:30). At the same time, new orders for durable goods and initial claims for US unemployment benefits are also expected.
Further speeches by Fed representatives are also on the agenda with Beth Hammack (15:00) and Barr (19:15).
On Friday, Michelle Cook and Beth Hammack (15:15) will once again provide monetary policy stimuli for investors.
US price data expected on Friday - Uni Michigan consumer confidence rounds off the trading week
The core rate for personal consumption expenditures in the USA will be published on Friday at 2:30 pm and could possibly provide important inflation signals.
Consumer confidence from the University of Michigan rounds off the trading week (16:00).
Dow Jones Industrial Average Index
Source: TradingView
