How Will a Busy Week of Macros Affect Markets?
Key events for the week
The first week of May is packed with macro events. The events center around politics as well as monetary and fiscal policy. Equity (VTI) (ITOT) and fixed income (AGG) markets could see temporary relief from the US debt crisis as both parties in the US reached an agreement late on Sunday. On the monetary front, we have the FOMC meeting scheduled during the week and the all-important April jobs numbers are scheduled to come out on Friday.
In the European Union (VGK), investors have stopped worrying about the French (EWQ) elections, as recent polls point to a comfortable victory for Macron. However, the second and final round of elections will take place this weekend, and past experience shows we can’t always believe the polls. Read Markets React to the First Round of France’s Election for more information.
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Politics remain in focus
Trump’s 100 days in office coincided with a possible US government shutdown and another failed attempt to bring the Affordable Care Act (or ACA) up for a vote. The busy week of macros began with Congress reaching an agreement on a $1 trillion spending bill that will allow the US government to function until September. In the previous week, the US government came close to a shutdown, but Congress passed a continuing resolution to allow the government to function for another week. Markets are likely to weigh these developments during the course of this week.
In the next part of this series, we’ll discuss the FOMC May meeting and review recent central bank actions.