Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Top 5 Things to Watch in Markets in the Week Ahead

EconomyMar 21, 2021 08:07AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Noreen Burke

Investing.com -- Investors will be watching joint testimony to Congress by Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen on Tuesday and Wednesday amid concerns over how much further the recent surge in Treasury yields can run. A summit organized by the Bank of International Settlements gets underway on Monday and will feature speeches from global central bank leaders, including Powell. The U.S. economic calendar includes data on housing and personal income and spending. Meanwhile, the euro zone will release PMI data for March while the UK is to publish a slew of reports including jobs, inflation, PMIs and retail sales. Here’s what you need to know to start your week.

  1. Powell, Yellen testimony

Powell and Yellen testify before the House Financial Services Committee on Tuesday and the Senate Banking Committee on Wednesday where they will discuss the health of the U.S. economy and the importance of fiscal and monetary stimulus in the recovery from the pandemic.

There are also more than half a dozen other Fed officials due to speak during the week, including Vice Chairman Richard Clarida, Vice Chairman Randal Quarles, Fed Governor Lael Brainard, and New York Fed President John Williams.

Financial markets have diverged from the Fed on the possible future outlook for monetary policy, sending yields on U.S. Treasuries to their highest in more than a year.

Investors are pricing in a first rate hike sooner than the Fed currently expects, amid fears that the economy could overheat as it recovers from the pandemic given President Joe Biden’s massive stimulus package combined with the Fed’s easy money policy.

  1. BIS summit

Before his joint testimony to Congress with Yellen, Powell is scheduled to speak Monday at the start of a four-day conference organized by the Bank for International Settlements on innovation in the digital age.

Other global central bank leaders who will be speaking at the summit include European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Canada head Tiff Macklem.

Meanwhile, a host of central banks are due to hold policy meetings during the week, including in Switzerland, Mexico, and South Africa.

The Swiss National Bank is expected to keep rates unchanged -0.75%, the lowest in the world, and maintain its interventionist stance at its meeting on Thursday.

  1. U.S. economic data

On the data front, durable goods orders and the personal income and spending reports are set to be the highlights of the week, along with figures on new and existing home sales.

The housing data together with the personal income and spending figures, which includes the PCE deflator, the Fed’s preferred inflation measure, will probably show weakness, due to the impact of severe winter storms on economic activity in February. However, economists expect the slump to be short-lived.

The U.S. is also to publish the latest revision of fourth quarter 2020 GDP, which was last reported at an annualized 4.1%.

  1. Stock market volatility

Investors are likely to remain focused on the rise in bond yields that has pressured share prices, even though indexes remain close to their record highs.

Optimism about the prospects for the economic recovery has accelerated a shift into bank and other value stocks, powering the S&P 500 and the Dow to record levels last week.

But the Nasdaq has lagged as technology and high-growth stocks have lost favor in recent months, with their valuations looking less attractive as Treasury yields rise.

Investors may also begin to fret that about the prospect of higher taxes that could threaten the rally in U.S. stocks as the Biden administration looks for ways to pay for its spending plans.

  1. Euro zone, UK data

In the euro zone, PMI data for March will shed light on how the bloc's economy is performing against the background of a chaotic vaccine rollout.

The UK is to release a mass of data, starting with the latest jobs data on Tuesday. Economists are expecting the unemployment rate to remain stable. Inflation data on Wednesday is expected to tick higher while PMI data the same data is expected to show the dominant services sector rebounding on optimism about the reopening.

Retail sales figures out on Friday are expected to show a partial recovery following a steep drop in January. All the reports taken together could indicate that the UK economy is emerging from the worst of the pandemic crisis.

--Reuters contributed to this report

Top 5 Things to Watch in Markets in the Week Ahead
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (20)
Dietmar Stahl
Dietmar Stahl Mar 21, 2021 10:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oh not again another No trade week because of Fed speakers
Dietmar Stahl
Dietmar Stahl Mar 21, 2021 10:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oh God not again another no trade weak due to fed speakers.
AmericaIsKing oftheGalaxy
AmericaIsKing oftheGalaxy Mar 21, 2021 9:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wonder if the banks will be raiding the profits again this week.
Chris Arntz
Chris Arntz Mar 21, 2021 8:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The fed just needs to shut up now.
John Ehrensberger
John Ehrensberger Mar 21, 2021 7:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just keep adding SCHD. Don't chance after any hot stocks of the week
Jay West
Jay West Mar 21, 2021 5:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sell big tech. Buy small tech. Make money. Bond yields and tax hikes will effect corporations much more. Buy LAZR PLTR PLUG QS SKLZ CCIV. Do you really think NQ bulls are going to start ONLY buying value stocks? LOL. Small caps will be silently popping in the background.
Bruno Silva
Bruno Silva Mar 21, 2021 1:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So.. Guys, when is next stimie check coming?
Rob Banks
Rob Banks Mar 21, 2021 12:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Silver is the best play this year
Zachary Bunn
Zachary Bunn Mar 21, 2021 12:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
why do you think this I just bought silver so I don't spend my money as easy
Raymond Huggard
Raymond Huggard Mar 21, 2021 12:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden leads us to a depression.
Thore Stensholt
Thore Stensholt Mar 21, 2021 12:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
On way OUT og depression,- you arent in The 20ies now, Mr Huggard. Withdraw 10tril ,now, and econemy wont rise om 3 years and Chima Will outdo Us.
George Georgakis
George Georgakis Mar 21, 2021 12:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
that's right.. and he gets orders obviously
Murali Brahmandam
Murali Brahmandam Mar 21, 2021 12:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
higher taxes yes will get sp 500 to 3200
Js My
Moorok Mar 21, 2021 11:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nasdaq to the toilet.
CHAD TENDIES
CHAD TENDIES Mar 21, 2021 11:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Weekend dow is blood red
Kleo Emuno
Kleo Emuno Mar 21, 2021 11:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I will be waiting
Sudam Uswatte
Sudam Uswatte Mar 21, 2021 11:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
guys give me a short summary. will the yield go down? usd goes up?
Jay West
Jay West Mar 21, 2021 11:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yield up. Dollar up. Yield going up attracts people to buy the dollar.
Gorgovan Gabriel
Gorgovan Gabriel Mar 21, 2021 11:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i shorted the gold in a bad time ?
Vijay Vuppala
Vijay Vuppala Mar 21, 2021 11:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no. gold will continue to go down. bitcoin is eating gold's lunch
Albert Kraak
ADK_Traders Mar 21, 2021 11:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
With yields going up and USD down vs EUR, GLD likely will dive March/April till at least end of summer.... even is FED will start massive bond buying support which will be push USD further down and likely only little softening bond yields
Skitla Swele
Skitla Swele Mar 21, 2021 11:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No.
FXFULLERTON SUPREME
FXFULLERTON SUPREME Mar 21, 2021 11:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i wonder when will crypto crash. its just a digital ledger of initial value is 0.000xx.The value is defined by people's demand.
Rafael Undurraga
Rafael Undurraga Mar 21, 2021 11:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell and Yellen will move the techs to the moon
Toro Bull Bull Toro
Toro Bull Bull Toro Mar 21, 2021 11:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Diamond Hands! 2 The Moon!
Parvez Mohamad
Parvez Mohamad Mar 21, 2021 11:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Is that possibel
Servio Tulio
Servio Tulio Mar 21, 2021 11:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not bad
Jay West
Jay West Mar 21, 2021 10:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hedge with SQQQ options. Hold them and sell weekly calls OTM against them to average down if market continues to rise. Dont sell them outright. Fade the rallies. Hedge by fading only a portion at a time. Example: buy 20 calls, fade a small rally with 5, the next rally with another 5, etc. Options traders know the routine. Thats my plan anyway. We all know hedge funds will play the bond yield card with tech stocks to scare out retail and snap up more shares. Then FOMO kicks in. Keep your hedges. Dont sell them. GLTA.
Amit Ruwala
Amit Ruwala Mar 21, 2021 10:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What SQQQ options strike & expiry do you recommend?
Jay West
Jay West Mar 21, 2021 10:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Amit Ruwala i bought the 6/18 $10 strike. They have a delta of .89. Be careful if you are not experienced with options. This ticker especially can be volatile. Understand and educate yourself on the dynamics of it. Start small and observe. You need options level 2 to sell calls against your long position, which can help lower losses like I stated above. Anyway, best wishes.
Jay West
Jay West Mar 21, 2021 10:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
6/18 $10strike. They have a .89 delta. Be careful if you are not experienced with options. This ticker especially can be very volatile. Be sure to educate yourself on the dynamics of it. Start small and observe. You need options level two in order to sell calls against it to lower your price if market goes against you. Best wishes
CHAD TENDIES
CHAD TENDIES Mar 21, 2021 10:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stonks only go up
Ronald Warren
Ronald Warren Mar 21, 2021 10:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Until they go down.
Ronald Warren
Ronald Warren Mar 21, 2021 10:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Watch for the crash soon. My guess, within two weeks. Almost 40% of Americans have recieved vaccines. Some first round, some complete. Still have 53,000 new cases daily. Does this thing work? As soon as the 10yr hits 2%, the market will selloff, not disputable. The radical influx of QE has made sectors of the market randomly soar. It's time for the bond yields. This could get ****
Elias Carmo Junior
Elias Carmo Junior Mar 21, 2021 10:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
dont be so down, look outside, it's beautiful out there and we'll thrive
Ronald Warren
Ronald Warren Mar 21, 2021 10:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It is a beautiful day! The sun is shining. I'm just making money trading this market. Good luck to you this week Elias!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email