In July, +224K monthly U.S. job adds sounds about right. Friday’s Federal post will be the final tell in this jobs-rich week.
When the U.S. likely shows investors the way forward with compelling July jobs this week, topline macro nests a U.S. infrastructure propelled by global commerce and tech.
U.S. Info Tech-savvy companies mine the growth spots.
Zacks #1 Ranks (Strong Buys) that lead U.S. large-cap stocks contain well-recognized West Coast names like Amazon (AMZN) and Nike (NKE).
Outside the U.S., manufacturing PMIs from Europe show strength is indeed building. On Monday, there was a whopping plunge to a 30.2 reading from Greece, slamming down from a prior 46.9 mark. The rest of Europe’s manufacturers look stronger — under Quantitative Easing (QE) and its weak Euro currency effect.
What Zacks #1 Rank stocks illuminate Europe’s stronger manufacturing trends?
It looks to be the Netherlands electronics company Koninklijke Phillips (PHG) and the French software systems company Dassault Systems (DASTY).
Note the success stories for both sides of the Atlantic? Growth spots share an Info Tech cornerstone.
For examples, think about Info Tech links between the Internet retail mastery of Amazon, the sophisticated software provide by Dassault Systems, and nifty electronic products provided by Phillips. Compelling IT solutions lift analysts’ earnings forecasts.
To conclude, watch for important monetary policy rate decisions from India, Japan, and the United Kingdom, as well. These are the managers of note in global finance away from the U.S. None should change policy rates. Their press conferences could be interesting.
To receive my weekly posts on global markets and global stocks, you can follow me on Twitter @johnblank100.
Here is the Week Ahead for Global Markets–
On Monday, the ANZ Australian job additions number was disappointing at -0.4% m/m, down from 1.2% m/m previously.
We got a host of European manufacturing PMIs today. For the Eurozone as a whole, the good news was the actual PMI was 52.4, above the prior 52.2.
For individual countries, Spain’s manufacturing PMI came in at 53.6, down from a prior 54.5. Italy came in at 55.3, above 54.1. France came in at 49.6, even with its prior 49.6. Germany came in at 51.8, above its prior 51.5.
A face plant was seen in Greece. This struggling country came in at 30.2, slamming down from a prior 46.9 rate. Manufacturing in Greece is in free-fall, after the new austerity for debt refinance deal.
The U.K.’s CIPS/Markit manufacturing PMI was 51.9, up from a prior 51.4.
The South African PMI came in at 51.4, in line with a prior 51.4.
The HSBC manufacturing PMI for Brazil should be 46.
In Mexico, the IMEF manufacturing index looks to be 52.8, below a prior 53.1 reading. The non-manufacturing index looks to be 51.2, in line with a prior 51.3.
The U.S. manufacturing PMI looks to be 53.8, in line with its prior reading. The U.S. ISM manufacturing number looks to be 53.5, also in line.
The U.S. also gets new consumer inflation data (expect an on target +0.1% m/m rise), a new personal income number (expect a lower +0.3% m/m), and a new personal spending number (expect a lower +0.2% m/m).
U.S. vehicle sales should be strong at 17.15 million annualized units.
On Tuesday, the Reserve Bank of India (RBI) announces its latest interest rate decision. The repo rate looks to be unchanged at 7.25%.
In the U.K., the Nationwide House Price Index looks to rise to +3.5% y/y, up from a prior 3.3% y/y.
In Brazil, industrial production could fall to -5% y/y. Actually, that’s better than the prior -8.8% prior reading.
The U.S. gets new factory orders data. Look for a +1.7% m/m rise, reversing a prior -1% m/m decline.
On Wednesday, the Chinese HSBC/Markit Services PMI should be around 51.8.
The overall Eurozone composite PMI should be 53.7.
The composite Eurozone services PMI should be 53.8, in line with the prior reading.
Italy’s services PMI should be 53, below a prior 53.4. France’s services PMI should be 52, in line with the prior number. Germany’s services PMI should be 53.7, in line.
Eurozone retail trade looks to growth +2% y/y, a little below the prior +2.4% y/y reading.
The U.S. ADP employment survey should show +210K jobs added, slightly weaker than the prior +237K, but still solid. The U.S. ISM non-manufacturing data should be strong at 56.3.
For Brazil, the HSBC composite PMI should be a weak 41.5.
On Thursday, Japan’s leading indicator should rise to 106.9, above the prior 106.2.
Germany’s factory orders should be +5.2% y/y, above a prior +4.7% y/y rate.
The unemployment rate in Greece should stay awful at 25.5%.
The Bank of England (BoE) holds its Monetary Policy Committee meeting and grants a new rate decision. The Base Rate is not expected to change from 0.5%.
U.S. initial claims should be red hot at 273K, in line with a prior 267K.
On Friday, Germany’s industrial production should grow +2.2% y/y, slightly better than the prior +2.1% y/y. In France, industrial production should grow +1.4% y/y, worse than the prior +2.8% y/y number. In Spain, industrial production should grow +3.8% y/y, well above a prior +3.4% y/y number.
The Bank of Japan gives up a new policy statement and there is a press conference with Governor Kuroda.
The HICP inflation rate for Greece should be weak at -1.1% y/y.
The week concludes with the big U.S. non-farm payroll number. Look for a +225K number, in line with the prior +223K.
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