What to Expect This Week


This week, in the United States, non-farm payrolls are expected to jump 150K as the government continued to hire Census workers and private employment picked up in May. We also expect the jobless rate to edge lower. In addition, the Institute for Supply Management (ISM) Manufacturing Activity index is likely to remain solid as production and new orders have risen recently.

In the Euro Area, the Bank of Spain's takeover of a small saving's bank last week renewed the worries about the fragility of the European banking sector. This may weight further on investors' confidence towards Europe's ability to contain fiscal deficit. Also, the unemployment rate in the euro area probably inched higher. Still, inflation is likely to increase in May due to higher energy prices which may limit the ECB capacity to inject money and liquidity throughout the euro system. In Japan, industrial production might have risen in April. In the United Kingdom, Manufacturing and Services Purchasing Managers Index is likely to be stronger in May. In Canada, the Bank of Canada will probably leave its interest rate unchanged as the recent turmoil in the financial markets brought back risk aversion. Also, after the April surge in employment, May jobs numbers are expected to come weaker. Yet, the unemployment rate may drop further. In addition, GDP is likely to grow 0.5% in March. Finally, in Australia, first quarter GDP is likely to rise further but at slower than 0.9% rate recorded in the last three months of 2009. Moreover, after six rate hikes in seven months, the Reserve Bank of Australia should keep rates on hold.


TradingEconomics.com
5/29/2010 2:23:52 PM