Will the job market stay strong? Or are we heading for Stagflation?
There are 3 major components for Stagflation:
• Rising inflation
• Declining GDP growth
• Rising unemployment
We know that the first two are happening, and, despite Jerome Powell’s announcement last Thursday of consecutive negative GDP numbers (two quarters in a row), he said that the job market is very strong.
So, it will be important to pay attention to this week’s announcements from the US Employment stats.
• JOLTS ((Job Openings and Labor Turnover Survey) Report – Tuesday 10:00am ET
• Unemployment claims – Thursday 8:30am ET
• Non-Farm employment – Friday 8:30am ET
• Unemployment Rate – Friday 8:30am ET
This week, the following international banks will be announcing rate increases:
• Reserve Bank of Australia – Tuesday 12:30am ET
• Bank of England – Thursday 7:00am ET
There are 1,508 companies reporting this week: Starbucks, CVS, MetLife, Energy Transfer, Berkshire and others.
As always, if you’re in the markets be in the know. Make sure you have proper risk management, a clear trade plan and stick to your rules.