Investing.com – This week investors will look to data on consumer prices and retail sales for the latest update on the health of the U.S. economy.
Markets have dialed back expectations on the pace of Federal Reserve rate hikes in 2019 in the wake of recent market turmoil. Wall Street ended its worst week since March on Friday amid a selloff triggered by concerns over a slowing economy and mounting trade war fears.
Fed Chairman Jerome Powell said last week that U.S. interest rates were nearing neutral levels, which markets interpreted as signaling a slowdown in rate rises.
Data on Friday showed that the U.S. economy created fewer-than-forecast new jobsin November, while October’s figure was revised lower.
Wage growth rose in line with forecasts, keeping the Fed on track to hike interest rates this month. But the report indicated that the labor market may not be as strong as hoped, easing pressure on the Fed to keep hiking rates in 2019.
Investors will also be looking ahead to the Brexit vote and the final monetary policy meeting of the year by the European Central Bank.
On Tuesday the British parliament is to vote on Prime Minister Theresa May’s Brexit plan and if the deal fails to pass, as widely expected, multiple possibilities will be thrown open, including the chance of a second referendum.