What will drive the markets this week?

Analytics, 22 March 2021

What will drive the markets this week?

U.S. stocks booked losses last week, with declines in financials pulling the Dow down while energy was the worst-performing sector in the S&P 500. The Nasdaq’s drop was attributed to the rise in bond yields which remain the main driver for financial markets.

This week investors will parse a range of economic data, including the U.S. housing sales, consumer spending, and the personal consumption expenditures (PCE) inflation index. The PCE price index, which measures inflation is used by the Federal Reserve as the main inflation index.

The real estate market in the US has been surging, driven by low mortgage rates and pandemic-induced remote work that has made it easy for people to relocate. Meanwhile, investors betting on a speedy recovery of the U.S economy should pay attention to February consumer spending data which will reflect the performance of the economy before the Biden administration’s first round of stimulus checks. While the fourth-quarter corporate earnings season has slowed down, a small number of notable companies including GameStop and Adobe are still set to report results this week.

Events that will drive the market this week

Monday, March 22:

Market Holiday in South Africa for Human Rights Day.
U.S. Existing Home Sales (February).

Tuesday, March 23:

Earnings: GameStop (GME) and Adobe (DBE) after market close
U.K. Unemployment Rate (January).
U.K. Average Earnings Index (January).
U.S. New Home Sales (February).

Wednesday, March 24:

Earnings: General Mills (GIS) before market open; Restoration Hardware Holdings (RH) after market close
U.K. Consumer Price Index (CPI) (February).
U.K. Producer Price Index (PPI) (February).
U.S. Durable Goods Orders (February).
U.S. Manufacturing Purchasing Managers’ Index (PMI) (March).
U.S. Services PMI (March).
U.S. Composite PMI (March).
U.S. Markit Composite PMI (March).

Thursday, March 25:

Earnings: Darden Restaurants (DRI) before market open
German GfK German Consumer Climate Index (April).
U.S. Gross Domestic Product (GDP) (Q4).
Japanese Tokyo Core CPI (March).

Friday, March 26:

U.K. Retail Sales (February).
German Ifo Business Climate Index (March).
U.S. Goods Trade Balance (February).
U.S. Personal Consumption Expenditure (PCE) and Core PCE Price Indexes (February).
U.S. Personal Consumption Expenditures (February).
U.S. Preliminary Michigan Consumer Sentiment and Expectations (March)

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