This week ahead || 11 July - 15 July 2022
NEWS
Inflation, earnings, and retail sales: What to watch this week
Financial markets have been preoccupied with one idea in recent weeks: recession. The coming week will offer more insight on whether inflation pressures are pushing business and consumer pullbacks that could tip the economy into recession. Friday's June jobs report cast doubt on the imminence of a wholesale downturn in the US economy. Last month, the US economy added 372,000 jobs while the unemployment rate held steady at 3.6%.
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Will earnings season trigger another leg lower for the Dow? Investors hunt for recession clues
Stock-market investors just can’t get off the merry-go-round this summer. A stronger-than-expected U.S. June jobs report on Friday calmed fears that the economy might have already slipped into recession, but simultaneously heightened expectations that the Federal Reserve will keep pressing ahead with aggressive interest rate increases. Expectations for aggressive rate hikes, in turn, fuel fears of a significant economic slowdown. And around and around it goes.
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European Stock Futures Lower; Inflation Releases Loom Large
European stock markets are expected to open lower Monday, with investors taking a cautious stance at the start of a week that includes a U.S. inflation report that could point to another substantial interest rate hike. At 02:00 AM ET (0600 GMT), the DAX futures contract in Germany traded 1.2% lower, CAC 40 futures in France dropped 1.5%, and the FTSE 100 futures contract in the U.K. fell 0.7%.
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Shares stumble before U.S. inflation, earnings hurdles
Caution gripped share markets on Monday as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates and the start of an earnings season in which profits will be under pressure.
An upbeat U.S. June payrolls report already has the market wagering heavily on a rise of 75 basis points from the Federal Reserve, sending bond yields and the dollar higher. Underlining the global nature of the inflation challenge, central banks in Canada and New Zealand are expected to tighten further this week. [NZ/INT][CA/INT].
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