Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


World Week Ahead: US jobs, Fed watch

World Week Ahead: US jobs, Fed watch

Jan. 6 (BusinessDesk) – Following Wall Street’s lacklustre start to 2014, the latest US jobs data will take centre stage to gauge the odds that Federal Reserve policy makers might announce a further easing of their bond-buying program after their meeting at the end of this month.

This week will see the release of the latest ADP employment report, weekly jobless claims and, importantly, the monthly government jobs data. The state of the American labour market forms a key ingredient to the FOMC’s take on the US economy’s need for ongoing stimulus.

Last month the Fed announced its decision to start cutting its monthly pace of bond purchases to US$75 billion in January, from US$85 billion. The minutes of that meeting, which will be released on Wednesday, will also be scrutinised for potential clues on the monetary policy road ahead.

The Labor Department report on January 10 may show the economy added 195,000 jobs in December, according to a Bloomberg survey, while a Reuters survey predicted US employers to have added 197,000 jobs. The unemployment rate is expected to hold steady at 7 percent, the lowest level in five years.

Before then, speeches by several Fed officials will also be monitored closely.

On Tuesday, Boston Fed Bank President Eric Rosengren will talk on the economic outlook in Hartford, Connecticut, while San Francisco Fed Bank President John Williams will speak on the economy and monetary policy in Phoenix, Arizona.

On Thursday, Kansas City Fed Bank Esther George will discuss banking and the economy in Madison, Wisconsin, while Minneapolis Fed Bank President Narayana Kocherlakota is set to talk in Minneapolis, before St Louis Fed Bank President James Bullard will speak on the economy and monetary policy in Indianapolis on Friday.

“Everything comes down to Fed expectations versus reality,” Larry Milstein, managing director in New York of government-debt trading at RW Pressprich & Co, told Bloomberg News.

The next two-day FOMC meeting starts on January 28. When Fed Chairman Ben Bernanke’s term expires at the end of this month, Fed Vice Chair Janet Yellen is set to succeed him.

Policy makers of the European Central Bank and the Bank of England are scheduled to meet this week.

Other US economic data scheduled for release this week include reports on factory orders and the ISM non-manufacturing index, due Monday; international trade, due Tuesday; the ADP employment report on Wednesday; weekly jobless claims on Thursday; and wholesale trade on Friday.

The US Treasury is scheduled to sell US$64 billion of notes and bonds this week.

And the next quarterly earnings season will get underway too this week as Alcoa reports results after the markets close on Thursday. Analysts forecast earnings for S&P 500 companies increased by 5.2 percent in the fourth quarter, according to data compiled by Bloomberg.

"If you have earnings growth and the economy is better, then stocks can go up," John Fox, director of research at Fenimore Asset Management in Cobleskill, New York, told Reuters.

Last week—shortened by the New Year’s holiday on January 1, the Dow Jones Industrial Average edged 0.05 percent lower, the Standard & Poor’s 500 Index fell 0.5 percent, while the Nasdaq Composite Index shed 0.6 percent

In Europe, the Stoxx 600 Index edged almost 0.1 percent lower last week. The UK’s FTSE 100 fell 0.3 percent, France’s CAC 40 shed 0.7 percent, while Germany’s DAX dropped 1.6 percent.

In the coming days, the latest reports on the economy here will arrive in the form of euro-zone PMI services as well as the region's Sentix investor confidence, and German CPI, on Monday; German unemployment, euro-zone CPI and PPI, due Tuesday; euro-zone unemployment, due Wednesday, and euro-zone confidence data, due Thursday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news