As we head in to June, the upcoming Brexit vote looms large over the markets, while meetings of the European Central Bank (ECB) and OPEC will also be closely followed. The monthly non-farm payrolls report from the US will be as hotly-anticipated as ever.

Brexit risks apparently weighed heavily on the last round of purchasing mangers’ indices (PMIs) and there is strong speculation that figures for May will be just as shaky. April saw the headline survey figures slump to 3-year lows as businesses scaled back plans ahead of the vote on June 23rd. UK service, construction and manufacturing PMIs will be released on separate days this week.

The ECB will debate on Thursday, June 2nd whether the current pace of monetary easing is sufficient, or if further loosening may be required. Economic indicators remain weak, with inflation consistently well short of the bank’s target of 2% and coming in at -0.2% in April. However, minutes from the ECB’s April meeting suggest Mario Draghi and co are happy to wait and see how the latest bout of easing plays out as there are signs of financial conditions easing in the Eurozone.

On the same day, members of the Organization of the Petroleum Exporting Countries (OPEC) convene in Vienna for their semi-annual meeting. Following the failure in Doha, pressure to cut output has subsided as prices recovered.  Crude prices have rallied towards $50 and there seems little appetite to limit production.

Rounding out the week is the closely-watched non-farm payrolls figures for the US labour market. These will be key for the Federal Reserve ahead of its meeting later in June as it eyes raising rates again.

Economic Calendar

(All times are BST)

Monday May 30

All Day – US and UK markets closed

Tuesday May 31

13:30 – Canada GDP figures

15:00 – US CB Consumer Confidence

Wednesday June 1

02:00 – China official manufacturing PMI

02:30 – Australia GDP data

02:45 – China Markit-Caixan Manufacturing PMI

09:30 – UK manufacturing PMI

15:00 – US manufacturing PMI

Thursday June 2

All Day – OPEC meetings

12:45 – ECB monetary policy statement with press conference from 13:30

16:00 – US crude oil inventories

Friday June 3

09:30 – UK services PMI

13:30 – US non-farm payrolls

Earnings Calendar

 

Tuesday May 31

Volkswagen (VOW), Q1 2016, EPS estimate 4.725

Zoe’s Kitchen (ZOES), Q1 2016, EPS estimate 0.042

Wednesday June 1

Halfords (HFD), Y/2016, EPS estimate 0.323

Thursday June 2

Johnson Matthey (JMAT), Y/2016, EPS estimate 1.751

 (Source: Bloomberg)

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