UK, EU rate decision meetings

In the US, the markets will closely monitor the May employment report which is expected to provide a view on the unemployment rate, initial jobless claims, continuing claims and unit labour costs. The ABC consumer confidence, mortgage applications and mortgage delinquencies will keep the markets posted on the confidence level and housing market in the US. On the activity front, market participants will look into the change in manufacturing and non-farm payrolls, non-farm productivity for the first quarter along with factory orders for April. The ISM manufacturing and non-manufacturing for May is also due to be published this week. Consumer credit, wholesale inventories and construction spending for April will close the data flow for next week.

In Euroland, much of the attention will be directed towards the European Central Bank Committee meeting on Thursday. In terms of economic indicators, the Purchasing Manager Index (PMI) both manufacturing and services for May will shed some light on the manufacturing activity within the Eurozone. Gross Domestic Product figures for the first quarter, along with the retail sales figures and the Producer Price Index for April are due to be released this week.

In the UK, market participants will also be looking forward at the Monetary Policy committee rate decision on Thursday. Meanwhile, the strength of the British manufacturing, construction and services sector during May will be provided by the relative Purchasing Manager Index (PMI). On the housing front, markets will look into HBOS house prices figures and mortgage approval figures for April. The M4 money supply and the Nationwide consumer confidence will complete the rest of next week's data.

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