The week ahead: US GDP; Nike, Royal Mail, Stagecoach, Tesco results
Our UK chief market analyst, Michael Hewson, looks back at this week's price action in equity markets, and ahead to the latest flash PMI numbers, US economic data, and key chart levels on the FTSE 100, German DAX, S&P 500, GBP/USD, EUR/USD and EUR/GBP. Tuesday: Optimism over a rebound in economic activity gained traction in May, when there was a decent rebound from the record lows in April, as economic activity collapsed sharply in the wake of lockdown measures. This might be a touch on the optimistic side given that a lot of businesses have struggled to reopen, most notably retail as well as travel and leisure, while in the UK we economic activity may lag behind, due to non-essential shops only reopening on 15 June. As a result, UK services activity may only improve to 37.5 from 29. Thursday: When Nike reported its Q3 numbers in March, it was notable that while online sales were resilient, its China operations were a significant drag due to the February shutdown of the Chinese economy. Even though the Greater China stores managed to reopen in March, the company was then faced with shutdowns in the US and Europe, which are likely to hit its Q4 numbers.