(MENAFN– ecpulse) Investors in the U.S. are waiting a highly crucial monthly jobs report this week, which could show that the recent slowdown in the world`s largest economy, caused by the severe winter, was only temporary.
March`s monthly nonfarm payrolls report, the most widely tracked US economic indicator, is expected to show that U.S. firms added 200,000 jobs in March.
Improving labor market, alongside a pickup in the manufacturing and services sectors, could also boost the case for the US Federal Reserve`s reduction of monetary stimulus.
Upbeat data would also put the focus on when the world`s most powerful central bank would begin raising interest rates.
Wall Street will also be tracking ISM data, car sales data and the ADP`s private-sector payrolls report for March through the week.
The Institute for Supply Management (ISM) will release the results of its national surveys on the manufacturing and services sectors for March this week. The data is expected to show an improvement over the preceding month.
Upbeat data could confirm to investors that the recent weakness in economic data was brought about by the harsh winter, suggesting that the U.S. economy`s growth momentum remains intact.
Market participants will also be tracking US trade deficit figures for February and earnings updates from Monsanto and Micron Technology, due this week.
A further strengthening of U.S. employment growth in March is likely to support a stronger US dollar especially after the Fed presented a less dovish policy outlook at their last FOMC meeting.
Job growth would boost US investor sentiment, which has suffered a bout of volatility as some major stocks, including biotechs, tumbled last week.
The NASDAQ biotechnology index finished 7% lower for the trading week ended 28 March. The NASDAQ biotech index has lost about 13% so far this month.
The rebound in US hiring began in February despite the cold weather. Employers added 175,000 jobs last month after creating 129,000 new positions in January.
General Motors Co . Chief Executive Officer Mary Barra will testify before U.S. lawmakers about why it took the company more than a decade to recall 1.6 million vehicles linked to 12 deaths.
The International Monetary Fund will release the analytical chapters of its Global Financial Stability Report. Topics covered include emerging-market economies and the implicit subsidy that large U.S. banks enjoy as too-big-to-fail institutions. Press conference due at 09:00 in Washington on Monday.
International Monetary Fund Managing Director Christine Lagarde is also set to make a speech on the global economy and challenges it faces, at 11:00 in Washington.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.