We could set for one of the busiest weeks of the year.
Europe is still being plagued by the coronavirus and a slow vaccine roll out which has now made It likely more lockdowns and restrictions are on the way.
As you may have seen there is still a ship stuck in the Suez Canal causing a slowdown in shipping trade. According to Reuters as much as 30% of the world’s shipping container freight passes through the canal which amounts to 12% of the worlds good. The World waits as authorities try to dislodge the ship and expect it to be free within the next 48-72 hours.
The primary focus for markets over the coming week will still on the central banks, especially the US Fed. With a stead stream of Fed speakers set to take the podium this week and US President Joe Biden continuing to discuss his $3 trillion infrastructure spending plan we should start see a clearly picture of the US recovery. Although most markets are closed for Good Friday, the US will release its most important figure Non-Farm Payroll. This figure is released monthly, and reflects the state of employment in the US, a key indicator for the Federal Reserve Bank. Expect extreme volatility in global markets following its release.
Closer to home Bank of England Governor Andrew Bailey is also due to give a speech, on Tuesday, which will be closely watched for further insights into his thinking following the previous week’s MPC decision. We shall also key UK economic indicators released, including the February employment report, on Tuesday, a reading on consumer prices in February, on Wednesday, and for retail sales on Friday.
By Alex Lampert-Zakiewicz