Key events in developed markets next week

Weekly initial claims data continue to be the main data point to watch given its timeliness, but the news remains grim.

Companies are still laying off staff in massive numbers, highlighting the economic dislocation from the Covid-19 pandemic and the fact that even with the re-opening of the economy, firms continue to struggle. Social distancing constraints, consumer caution and the legacy of 40 million Americans out of work presents massive headwinds for growth.

Durable goods orders will fall sharply given the declines in ISM new orders while 1Q GDP could be revised slightly lower from the -4.8% annualised initially reported. Personal spending will also post a hefty fall given that retail sales collapsed and they make up just over 40% total consumer spending.

Given this backdrop the case for additional fiscal support is strong and we will be looking to see if progress can be made on this in the weeks ahead.