5 Important Economic Developments to Watch Next Week

5 Important Developments to Watch Next Week

The 5 important developments to watch next week which will be effective in the stock markets. Here are the details;

1.Increase in the Number of Coronavirus Cases

According to data quoted by Reuters, the number of coronavirus cases in the USA reached a record high on Friday and reached over 177,000. Thus, the number of cases in the country recorded an all-time high for four days in a row.

According to the report, many state governors, including California, Oregon, and Washington, warned citizens not to travel, worrying that the number of cases will increase with the approach of the holiday period.

Since the outbreak began, the coronavirus has infected 10,690,665 people, causing the deaths of 243,580 people, according to Reuters data.

2.Value & Growth

With good news from the coronavirus vaccine at the beginning of the week, investors also took an optimistic attitude about the market.

As soon as positive news came from the vaccine, energy companies, banks, industrials, and other value shares took action. In addition, investors profited from technology shares, thanks to people staying at home.

However, FED officials’ warnings that the increase in cases will adversely affect the economy may end the positive atmosphere in the markets.

3.US Retail Data

US October sales data will be announced on Tuesday. The data is estimated to increase by 0.5 percent. If this happens, it will be proven that the USA made a strong consumption expenditure in the last quarter despite the increase in the epidemic.

Housing starts are expected to rise in October, reflecting the increase in new housing sales, thanks to the benefit of low loan rates by buyers.

Also, on Thursday, the first unemployment applications in the US will be shared and closely monitored as it will show how the labor market is doing.

4.Retail Earnings

Investors will be closely monitoring earnings reports and forecasts from US retailers this week to see the state of consumer demand.

Walmart (NYSE: WMT), Home Depot (NYSE: HD), and Kohl’s (NYSE: KSS) will release the report on Tuesday; Target (NYSE: TGT), Lowe’s (NYSE: LOW), and TJX (NYSE: TJX) on Wednesday and NVIDIA (NASDAQ: NVDA) at closing; Macy’s (NYSE: M) on Thursday and Foot Locker (NYSE: FL) on Friday.

5.Central Banks

The speeches of FED officials will be eagerly awaited this week. Speeches are expected from Vice President Richard Clarida on Monday, New York Fed Chairman John Williams on Tuesday, and Chicago Fed President Charles Evans on Wednesday.

Speeches by European officials as well as the US will also be important. ECB President Christine Lagarde will be attending two online events this week. BoE Administrator Andrew Bailey, Executive Vice President David Ramsden, and Senior Economist Andy Haldane will also speak on Monday and Tuesday.

This article has a contribution from investing.com and Reuters.