A preview of what awaits the financial markets next week: investors will mainly keep an eye on the inflation figures from various European countries and the US debt ceiling. In terms of business figures, it remains calm.
Statistics Netherlands will publish its first estimate of inflation figures for May on Thursday. Figures are also expected from Germany, France and the eurozone on how much more expensive life has become.
Recently, inflation in the Netherlands fell from its peak in the autumn of last year, but suddenly rose again in April. This was mainly due to a less pronounced fall in energy prices, but more expensive food also played a role.
The inflation figures indicate whether the interest rate hikes of the European Central Bank (ECB) are starting to have an effect. If that’s not enough, more rate hikes are to be expected. ECB policymakers will meet again in mid-June.
US government debt ceiling
Although the White House and Republicans have reached an agreement in principle on the debt ceiling in the United States, it still has to be passed through both the House of Representatives and the Senate.
A crisis now seems averted. President Joe Biden and Republican Leader in the House of Representatives Kevin McCarthy reached a deal that will keep government spending nearly the same next year. Without an agreement, the United States would no longer be able to pay its bills at the beginning of June, which could have major consequences for the value of the dollar and the global economy.
It is unclear whether the more radical Republicans will agree to this deal. If not, then McCarthy needs support from Democrats. And it is not yet certain whether they all want to vote for this deal.
It will not become clear until Tuesday how the US stock markets react. Stocks on Wall Street will remain closed on Monday for Memorial Day. The stock markets in London are also closed for a holiday. Trade is normal in the rest of Europe.
In terms of business figures, it has been a quiet week. In the Netherlands, the games company Azerion, which rose sharply last week, opens the books. Figures from the US come from server maker HP Enterprise, printer company Hewlett Packard, software company Salesforce and chip maker Broadcom.
2023-05-28 14:19:45
#Investors #eye #inflation #data #debt #ceiling #Economy
