By Noreen Burke
Investing.com – It will be a busy week in the markets, and while the economic impact of coronavirus in China, now called Covid-19, is still the biggest problem for investors, a large amount of economic data is from the United States. Great Britain and the Eurozone are closely monitored. Several Fed spokesmen are expected to appear in a week of shortened US holidays, while the minutes of the bank's last meeting are due on Wednesday. Here's what you need to know to start your week.
- According to China, the corona virus slows down work, China says
The number of new coronavirus cases in China declined on Sunday, and a health official said the intensive efforts to stop the spread were beginning to show results.
China's latest figures show 68,500 cases of illness and 1,665 deaths, most of them in Hubei. China reported 2,009 new cases on Sunday, compared with 2,641 the previous day, and 142 new deaths, one of 143 the previous day. Outside of China, there have been about 500 cases and four deaths to date.
The economic impact of the epidemic is not yet known. Some analysts have estimated that China's annual growth could slow to 4-5% compared to the government's estimated 6% annual growth.
However, some investors believe that the growth lag will be largely contained by the first quarter, which would give China's economy room to catch up later this year.
- US market holiday
The US financial markets will be closed on Monday for Presidents Day. The New York Stock Exchange and Nasdaq will be closed, and trading on CME exchanges will cease, meaning that there will be no settlement for gold or futures contracts.
Major U.S. indices rose late Friday, posting earnings for the week, according to sources, according to a CNBC report. The White House considered tax incentives for people in the United States to buy stocks.
US stocks reached record highs on Wednesday, fueled by hopes of a Fed accommodative monetary policy after Chairman Jay Powell said he was following the progress of the coronavirus outbreak on its effects on China and the global economy.
- Fed protocols; US data
The US Federal Reserve is expected to publish its January meeting on Wednesday. Investors pay close attention to whether the effects of the corona virus are mentioned. In addition to the minutes, several Fed policy makers will speak during the week, including the President of the Minneapolis Fed, the head of the Dallas Fed, and the Fed and governors.
Outside of the Fed, housing data will dominate the economic calendar, with reports of overdue and. This should indicate that the housing sector continues to develop very solidly.
- Will UK data indicate Boris bounces off?
Britain will release a series of data this week, and although it may be too early to see signs of a recovery after the December election, the Tuesday report will release the numbers on Tuesday and a report on one Published the day later indicate signs of a "Boris Bounce" after the Prime Minister's emphatic election victory.
The PMI data for February, due to be released on Friday, shows whether the sharp rise in the past month that has helped anticipate a rate cut by the Bank of England continues.
Investors will continue to see speculation as to whether the UK government will move to more aggressive fiscal stimulus measures following Chancellor Sajid Javid's resignation in shock last week, to be replaced by Rishi Sunak.
- Data from the euro zone can show the first signs of a virus impact
After the worst start in a year in five years, this week's economic data is being closely monitored as reports may provide the first signs of the impact of the corona virus on the block's economy.
Tuesday's will be the first indicator after the corona virus, while Thursday and Friday's PMI numbers will also attract a lot of attention. A fall would most likely translate into dampening economic recovery expectations and underscore that the European Central Bank is keeping interest rates on hold for longer.
The ECB is expected to publish its January meeting on Thursday. The main focus will likely be on details related to the review of their monetary policy strategy.
–Reuters contributed to this report