Investing.com – trade tensions are expected to continue to dominate the market sentiment this week, but investors will also follow closely the results of the elections in the European Union, the race to political leadership in the Uk, a flood of economic data, global and more quarterly results from retailers in the United States.
It will be a week shorter, the financial markets of the United Kingdom and the United States were closed on Monday for the holiday.
Here’s what you need to know to start your week.
The us president, Donald Trump, will continue its discussions with the japanese Prime minister, Shinzo Abe, at the beginning of this week, in a climate of tension on the trade disputes. Trump is not satisfied with the significant trade surplus of Japan and plans to exercise of customs duties on its exports of cars if a bilateral trade agreement is not concluded.
On Friday, China will increase tariffs on us imports of a value of $ 60 billion in retaliation to the us decision to increase tariffs on chinese imports, increasing the trade war between the two biggest economies in the world, and threatening to harm the global economy.
The trade war has extended to the control of the world’s technology after the government Trump has prohibited american companies from doing business with the chinese giant telecom Huawei.
On Friday, Trump was left to hope that Huawei could be part of a trade agreement, but at least that new threads are announced, investors will not be convinced.
The european elections ended Sunday parties and eurosceptics are doing overall, but less than expected.
“The concerns are great as the center continues to fragment (in the EU) and that the populists are successful in a sufficient number to prevent the continuation of the european integration “, said the ING bank (AS of:INGA) in a note.
“For the markets, the two things to watch will be: (a) if the share of the vote expressed by the eurosceptics largely exceeds 25% and (b) if those parties can work together as a united group in the coming months.”
EU leaders are to meet Tuesday in Brussels to begin the process of appointment of the next leaders of the EU institutions, including the presidents of the parliament, the commission and the council.
The search for a new president of the European Central Bank will also be at the centre of the concerns of the leaders of the EU. Investors are eager to see a successor to Mario Draghi and whether he will emulate his approach to monetary policy.
The contest to replace Theresa May as Prime minister of the united kingdom is all the rage, the eight candidates currently in the race, claiming that they can succeed where it has failed.
Friday, May announced that she was withdrawing for not being able to implement the Brexit. She has tried three times to get a withdrawal agreement. She accepted the agreement of the EU through the Parliament, but has not managed to reach a consensus.
The initial deadline of march 29, the Brexit has been extended to October 31, to see if a compromise can be reached. The resignation of May has hinted at the possibility of a new Prime minister who could claim to “Brexit” without agreement or to a possible general election.
China is to publish on Friday the official data, the PMI for may, with growing concerns about the impact of customs duties on the import of the United States on the world’s largest economy.
The United States will publish Friday updates on the consumption expenditure and the measure of inflation preferred by the Federal Reserve, which will give a new insight into the strength of the economy. Investors will on Thursday, the updated figures of the growth of u.s. GDP in the first quarter. Other u.s. data this week include figures on trade and pending home sales.
The Bank of Canada is expected to maintain its monetary policy unchanged at its next meeting on Wednesday, before the GDP data for march on Friday.
A number of large u.s. retailers are expected to publish their results, including Costco (NASDAQ: COST) Thursday. Dollar Tree (NASDAQ: DLTR), Gap (NYSE: GPS) and Ulta Beauty (NASDAQ: ULTA) should also publish their reports on Thursday.
Among the other companies that publish the results this week, we can mention the fashion retail Abercrombie & Fitch (NYSE: NYSE:ANF) and Canada Goose (NYSE: GOOS) on Wednesday.