- European index contracts point to higher open before scheduled May services PMI readings
- Markets await important ADP and ISM services report from the US
- Attention turned to the BoC, which is likely to cut rates by 25 bps today
Today, investors will receive a number of important data from the Eurozone, which will open with releases from French industry, where a slight recovery is expected. Attention will then focus on Eurozone and German PMIs. Especially in the case of Europe's largest economy, the market expects a visible improvement. Moving overseas, yesterday's JOLTS from the U.S. indicated that vacancies in the U.S. economy were at their lowest levels since 2021. In today's ADP data, showing the change in employment among private, U.S. businesses, the market will expect a confirmation of the trend, suggesting a cooling labor market, putting more 'dovish pressure' on Federal Reserve policy.
Attention, however, will mostly focus on 3 PM BST, when the market will learn the ISM data from the US service sector; it is in services that we see anchored, higher inflation, and it is a sector from which it is difficult to combat, given the observed growth in real wages. The market will focus not only on the headline reading, but on the price sub-index, and it seems that it would be particularly undesirable for markets if the price sub-index were decidedly stronger, against the backdrop of other ISM readings of orders, labour or business activity. The Bank of Canada is likely to cut rates by 25 bps today, but the market will be closely watching the press conference, scheduled for 3:30 PM BST to find out what scale of easing to expect this year.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app7:45 AM BST - France, industrial production (April). Expectations: 0.3% vs. Previously: -0.3%
8:00 AM BST - Czech Republic, retail sales ex-cars (April). Expectations: 5,5%. Previously: 6,1%
8:55 AM BST - Germany, services PMI. Expectations: 53.9 Previously: 53,2
9 AM BST - Eurozone, services PMI. Expectations: 53.3 Previously: 53,3
9:30 AM BST - United Kingdom, services PMI. Expectations: 52.9 Previously: 55
10 AM BST - Eurozone, PPI inflation. Expectations: -5.3% Previously: -7.8%
1:15 PM BST - US, ADP report. Expectations: 175k Previously: 192k
2 PM BST, Canada, BoC decision. Expectations: 4.75% Previously: 5%
3 PM BST, US ISM services. Expectations: 50.8 Previously: 49,4
- Business activity. Expectations: 53 Previously: 50.9
- Prices paid: 59 vs 59.2 previously
- Employment: 47.2 vs 45.9 previously
- New orders: 53.2 vs 52.2 previously
3:30 PM BST U.S., change in oil inventories: -1.9 million barrels vs -4.16 million previously
- Change in gasoline inventories: 2.6 million vs. 2 million previously
- Change in distillate inventories: 3 million vs 2.5 million previously
3:30 PM BST, Canada, BoC press conference
Speeches by central bankers
- 3:30 PM BST - Macklem, Governor of the Bank of Canada
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
