This week, traders should pay attention to the details of the European economic recovery plan, latest data on US employment, and Texas Railroad Commission’s decision on oil production.
Major Events on the Economic Calendar
- Germany releases its manufacturing PMI on May 4.
- The UK releases its services PMI on May 5.
- The US releases the ADP nonfarm employment report on May 6.
- The Bank of England announces its key rate decision on May 7.
- The US releases Nonfarm Payrolls on May 8.
May 4. The Fate of the Tesla Plant in California
Tesla plans to resume normal operations at its Fremont, California factory. This can only be prevented by the extension of the state’s shelter-in-place restrictions, which are scheduled to be lifted on May 4.
In the USA, the possibility of easing sanitary restrictions is a subject of intense discussion. This process has already begun in some states. However, even the members of the House of Representatives refused to resume their work on May 4 because of the ongoing epidemic of COVID-19.
May 5. Oil Production in Texas
The Texas Railroad Commission (RRC) will discuss the possibility of oil production reduction. Ryan Sitton, one of the commissioners, had earlier suggested a 1m barrel per day reduction. However, his colleagues rejected the idea and sent it to the prosecutor’s office for discussion.
The Texas Railway Commission is not only responsible for the railroads, but also the state’s oil sector. It’s possible that Texas oilmen will agree to cut raw materials production on May 5.
May 6. European Economic Recovery Plan
By this day, the European Commission should present details of the work plan of the EU economic recovery fund. French President Emmanuel Macron warned the European Union about the risk of collapse if they do not take all the possible measures to support the most affected regions.
Meanwhile, there is still no unanimity among the bloc countries on the exit strategy from the global recession. Wealthy members of the union are not in a hurry to go to rescue of other countries.
May 7. Prospect of Extended Quarantine Period in the UK
This is the last day of the lockdown in the UK. However, according to Prime Minister Boris Johnson, the country is not ready to lift the restrictions yet. The quarantine measures are likely to be extended. Meanwhile, the inflation rate in the United Kingdom has fallen to a two-year minimum.