After a turbulent trading week, the coming days should be a little more relaxed, at least from the perspective of the economic calendar. However, with extremely weak jobs data last Friday and the associated economic concerns, volatility could remain high. The current reporting season is also in the spotlight once again. Developments in the trade dispute should also continue to be monitored closely.
Weak US labor market report causes a stir - Trump fires statistics chief
In July, only 73,000 new jobs were created outside the US agricultural sector, significantly fewer than economists surveyed by Reuters had previously estimated (110,000). In addition, 258,000 fewer jobs were created in May and June than previously reported.
In response, Trump wrote on his "Truth Social": "In my opinion, today's labor market numbers were FAKE to make the Republicans and ME look bad." The US president then also fired the head of the Office of Labor Statistics.
The effects of recent events could continue to be felt in the new trading week.
Focus on China data on Tuesday - ISM data ahead
Important economic data from China could provide relevant guidance for trading in the night from Tuesday to Wednesday. The Caixin Purchasing Managers' Index (services) is expected at 03:45.
On Tuesday, the focus will be on the ISM Purchasing Managers' Index for the US service sector (16:00).
Investors likely to look ahead to Fed comments in the middle of the week
Following last week's Fed meeting, scheduled speeches by various Fed representatives could again attract interest in the middle of the week. In addition to Governor Lisa Cook and Susan Collins (Boston/20:00), Mary Daly from the central bank branch in San Francisco is expected to speak (22:10).
Last Wednesday, the Federal Reserve left the key interest rate unchanged for the fifth time in a row. However, investors are hoping that the monetary authority will turn the interest rate screws downwards in the second half of the year.
Initial claims for US unemployment benefits and inflation expectations (Uni Michigan) round off the trading week
Initial jobless claims are usually expected on Thursday (14:30). This data should be particularly exciting after the official US labor market data (non-farm payrolls) from last Friday.
A speech by Raphael Bostic (Atlanta) could also provide monetary policy impetus (16:00).
On Friday, inflation expectations from the University of Michigan are on the agenda (16:00).
Alberto Musalem (St. Louis) rounds off the trading week (16:20).
Reporting season continues with figures from the second and third series
In the ongoing reporting season, the figures for the past financial quarter from Palantir Technologies (ISIN: US69608A1088) today, McDonald's (ISIN: US5801351017) and Walt Disney (ISIN: US2546871060) on Wednesday and Merck & Co (ISIN: US58933Y1055) on Thursday could be interesting.
Dow Jones Industrial Average Index
Source: TradingView
