Investors are expected to engage in a flurry of profit taking over the next week due to, partly, major news from this weekend about the decision by OPEC and its allies to continue with oil production cuts.
Concerns over coronavirus cases rising, heightened geopolitical tension, as well as a raft of key data to be released over the next few days are also set to impact market activity.
Other key news over the weekend has also caught investors’ eyes:
Britain: Johnson’s plans, COVID-19 fears, and key data
Rebuild Britain: UK prime minister Boris Johnson will set out plans to “rebuild Britain” in the wake of the coronavirus pandemic, amid reports he wants to ease lockdown restrictions quickly to save millions of jobs.
Johnson will, this week, chair a meeting of his cabinet to update them on the next lockdown-easing steps for a number of sectors, which are expected to take effect from 15 June.
It was reported that the prime minister will unveil plans to ease restrictions on weddings and funerals from next month, as well as possible measures to reopen hairdressers before 4 July.
Meanwhile, government scientific advisers believe the rate of coronavirus transmission – the R – has not breached one across the UK, despite concerns about the North West and South West, health secretary Matt Hancock has said. However, fears of a second coronavirus spike grew after new figures showed the virus could be growing exponentially in the northwest of England.
Key data: Important figures around gross domestic product (GDP), industrial and manufacturing production for April, as well as trade balance for April, are expected 12 June.
Europe: GDP and trade balance
GDP and Germany trade balance: Europe’s Q1 GDP figures are expected 9 June while Germany’s trade balance data for April is set to come out 8 June. This will give investors further information on the impact of lockdown across the region.
US: Labour market, the Fed, and inflation
Federal Open Market Committee (FOMC) meeting: A key event of the week ahead will be the latest FOMC meeting with updated US economic projections, meant to take place 10 June.
Markets will be looking closely for any change in the Fed's stance alongside its updated economic projections, which will set out the expected depth of recession and speed of recovery, IHS Markit said.
Labour market: The JOLTS labour market survey is due out 9 June. Those will be followed on June 11 by weekly initial jobless claims data. Last week, claims hit 1.9 million.
US CPI: Data that sheds light on inflation in May will be published 9 June.