Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 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

EconomyNov 21, 2021 06:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Noreen Burke

Investing.com -- Investors will be paying close attention to Wednesday’s Federal Reserve meeting minutes for fresh insights into the impact of soaring inflation on the future path of interest rates. Markets are also awaiting an announcement from President Joe Biden on his pick to lead the U.S. central bank, with a possible decision expected ahead of Thursday’s Thanksgiving holiday. There will be a flurry of U.S. economic data on Wednesday ahead of the holiday, while PMI data out of the euro zone, UK and the U.S. during the week will outline the impact of supply chain issues and inflation on business activity. Meanwhile, Black Friday kicks off the key holiday shopping period. Here’s what you need to know to start your week.

  1. Fed minutes

On Wednesday, the Fed will publish the minutes of its November meeting, in which policymakers decided the U.S. economy was strong enough to start scaling back its pandemic-era asset purchase program, put in place to bolster the recovery.

Since then, the economic recovery has continued to accelerate, with job gains picking up and inflation continuing to soar, leading Fed Vice Chair Richard Clarida to call last week for a discussion on a quicker taper to position the Fed to hike rates sooner.

Last Thursday, Chicago Fed President Charles Evans, known as a policy dove, said he is "more open-minded" to raising interest rates next year than he was six months ago. Separately, Atlanta Federal Reserve President Raphael Bostic has signaled his support for a mid-2022 rate hike.

The Fed is due to publish fresh quarterly forecasts following its next meeting in mid-December and these may give a better read on how much policymakers' views have altered.

  1. Biden’s Fed pick

The White House said last week that President Joe Biden will likely decide before Thanksgiving whether to keep incumbent Fed Chair Jerome Powell in place for another term or promote current Fed Governor Lael Brainard to the position.

Analysts expect some stock market volatility around the announcement, particularly if Brainard is chosen.

Powell, whose term is due to end in February next year, was appointed in 2018 by then-President Donald Trump. Brainard, who has been on the Fed board since 2014 is favored by progressive Democrats and is seen as more dovish than Powell.

If Brainard is appointed markets may reprice the timing of future rate hikes, while the prospects of lower interest rates for longer could see a sell-off in U.S. Treasuries prompted by expectations for higher inflation.

  1. U.S. data dump

The U.S. is to release a string of economic data on Wednesday before markets close for Thursday’s holiday. The highlight will be figures on personal income and spending, which includes the core PCE price index, rumored to be the Fed’s favored inflation gauge.

The economic calendar also features a revised data on third-quarter GDP, initial jobless claims, durable goods orders, new home sales and consumer sentiment.

Reports on existing home sales and November PMI data, which is expected to show only a modest improvement will be released on Monday and Tuesday, respectively.

  1. PMIs

While November PMI data out of the U.S. is expected to show a modest uptick in business activity, similar surveys from the euro zone and the UK are expected to show activity in the manufacturing and services sectors is slowing.

Rising infection numbers are leading to renewed restrictions in some parts of Europe, while spiking gas prices are fueling inflation, compounded by a global supply chain crunch.

The European Central Bank is coming under increasing pressure to tighten its ultra-loose monetary policy to offset the hit to households spending power, but ECB President Christine Lagarde has pushed back, arguing that tightening policy now could choke off the economic recovery.

Meanwhile, the Bank of England looks set to become the first of the world's big central banks to raise rates since the onset of the pandemic, with investors and economists expecting a rate hike at its upcoming December 16 meeting.

  1. Black Friday

The holiday shopping season gets underway in earnest on Friday, against a background of soaring inflation and supply shortages.

There has been some concern that high inflation could eat into consumer spending, but a surge in October retail sales numbers indicated that Americans started shopping early to beat supply shortages. Strong third quarter retail earnings have also added to the positive signs for holiday shopping.

"Out of the Q3 earnings, one of the trends we have seen is the resounding strength of the U.S. consumer," Jessica Bemer, portfolio manager at Easterly Investment Partners told Reuters on Friday.

"We've heard it all through this week from retailers talking about the consumer coming back into the store, enjoying the shopping experience, and getting ready for the holidays. It makes sense but it was really validated during earnings season."

--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 (15)
Oldfashioned Owl
Oldfashioned Owl Nov 21, 2021 10:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The era of unproductive population begins with the unlimited ***of the spineless. How far can one go doing it! Its a sureshot way to the collective misery. What the Collective utopic socialists always 'think' is that taking from Rich & redistributing to the poor is the final remedy. Its not. When the money ends, the poor remain poor. There is a reason a person is more successful than others. The jungle ecosystem thrives when the prey & predator are free on their own. Liberals think they can create a Zootopia lmao.
infinite knowledge
infinite knowledge Nov 21, 2021 10:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
and you 🤔 thinks your smart lol...
Oldfashioned Owl
Oldfashioned Owl Nov 21, 2021 10:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
infinite knowledge No. Its your deduction. There is a reason why one is not advised to go toward a jungle with ferocious animals. Its a dog eat dog & rat eat rat world throughout our genes. Any attempt to mask it is only bound to fall in due time. That philosophy is called Socialism. There is no providing to those who won't learn to fish for themselves.
Matt Novakovich
Matt Novakovich Nov 21, 2021 9:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so short Tennis rackets? or buy gold?
Todd Gray
Todd Gray Nov 21, 2021 7:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what people don't understand about American liberals, is they are the modern fathers of ***** leading the common people into a hunger games, dystopian world.
Todd Gray
Todd Gray Nov 21, 2021 7:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the theory is called eugenics.
Kevin Avila
Kevin Avila Nov 21, 2021 3:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
FED wont even hint to rate hikes yet… thats next month.
William Bailey
William Bailey Nov 21, 2021 12:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Fed can print , then Print again, then print some more, then print even more and finally print ! Did y’all know the Gubmit has a quid pro quo with Fed that allows the The Fed to remit all interest to the treasury and roll bonds non-competitivly forever ? In reurn the Fed prints cash for its bank buddies for free !! Tbis is why the markets will go up until thr entire financial system collapses !!!
Uttam Lawati Limbu
Uttam Lawati Limbu Nov 21, 2021 12:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i am from nepal
Rodney Dangerfield
Rodney Dangerfield Nov 21, 2021 12:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
89% of stocks are owned by those in the top 10% of wealth in the United States
Nitin Tekle
Nitin Tekle Nov 21, 2021 11:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
informetion realiy good
Richard Saunders
Richard Saunders Nov 21, 2021 11:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Brainard?? Well, my gold, silver and copper will go even higher.
New Jazenevd
New Jazenevd Nov 21, 2021 11:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Brainard nomination would be certainly a plus for “anti-dollar”, “pro-inflation” investments.
Empire Destroyer
Empire Destroyer Nov 21, 2021 11:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
New Jazenevd most investments pro-inflation, have you seen tech and Dow? 🤣
New Jazenevd
New Jazenevd Nov 21, 2021 11:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Empire Destroyer  I don’t argue with this. All stocks are pro-inflation. However, in longterm, if high inflation persists for long, some businesses are suited better than others. More specifically, some businesses have input costs front-loaded in big way. The latter is good in longterm high inflation environment.
Vinayak sahu
Vinayak sahu Nov 21, 2021 11:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
guess usd will have upper hand of euro atleast till the new year
Fernando Alonso
Fernando Alonso Nov 21, 2021 10:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More dovish? holy cow what come next? Ferrari's free distribution?
Stephen Kruse
Stephen Kruse Nov 21, 2021 10:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If that’s the case, Treasures would rally to reprice lower rates for a longer time. Not sell off.
New Jazenevd
New Jazenevd Nov 21, 2021 8:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Also, “strong US consumer” is an urban myth promoted by media for political purposes, clearly misleading reporting. US retail sales data was made “strong” last week by reporting numbers unadjusted for inflation, without any attempts to adjust.
Steffen vdm
Steffen vdm Nov 21, 2021 8:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
+25 thumbs up from my side
New Jazenevd
New Jazenevd Nov 21, 2021 7:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell is a colorless bureaucrat. Brainard is a left-wing fool. Great choices, really. The Fed has never been perfect, it's impossible. However, now it comes to open comedy. Every institution is crumbling under limitless democracy. Good, qualified people do not have a chance to have influence or even, God forbid, take important positions in this environment.
Stephen Kruse
Stephen Kruse Nov 21, 2021 7:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The goal is to manage interest rates and unemployment. Inflation could become transitory as supply chain concerns ease and increasing employment as COViD wains. Raising interest rates too soon would only inhibit the growth we need.
New Jazenevd
New Jazenevd Nov 21, 2021 7:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stephen Kruse  Growth achieved by money printing is illusory, to say the least.
jason xx
jason xx Nov 21, 2021 7:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There is someone out there more dovish then Powell?
Empire Destroyer
Empire Destroyer Nov 21, 2021 7:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pretty much any democrat nowadays 🤣
Dennis Liu
Dennis Liu Nov 21, 2021 7:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Its a typo, the author meant to write Brainard.
Empire Destroyer
Empire Destroyer Nov 21, 2021 7:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So markets go to ATH again?
Edward Chong
Edward Chong Nov 21, 2021 7:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ya haha
 
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