Week Ahead: Energy Politics And A Barrage Of Data Releases
XM Group | Jun 24, 2022 09:52AM ET
Politicians scramble
The spike in energy prices and their impact on consumers has turned into the most important political issue across the world, sending global leaders scrambling to come up with solutions or suffer the wrath of angry voters. With midterm elections coming up in the United States, the White House is in the eye of the storm.
It’s not only politicians feeling the burn. Energy prices are one of the main drivers of inflation expectations in markets, which in turn drive central bank decisions. The Fed won’t need to be as aggressive with rate increases if oil prices finally cool down.
With this in mind, the meeting of G7 leaders in Germany this weekend could be crucial. Stabilizing energy prices is high on the agenda, amid whispers that even drastic measures like price controls are under consideration. These summits rarely produce any real action, but then again, markets only need to sense something is on the horizon to move.
In terms of data releases, the coming week will feature durable goods orders on Monday, ahead of the core PCE price index on Thursday and the latest ISM manufacturing PMI on Friday.
In neighboring Canada, GDP numbers for April are out on Thursday but are likely to be seen as outdated by traders.
Finally in China, investors will get the first glimpse into how the economy performed in June when the official PMIs are released on Thursday.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.