Investors are preparing for a new stock market week, in which they will receive data on the situation in the US labour market. Job growth and unemployment are aspects the Federal Reserve is considering when making its next interest rate decision.
Furthermore, some companies, including Shell, will provide updates on their results in the second quarter.
In the US, pay slip processor ADP will publish figures on the American labour market on Wednesday. This should show how many jobs the corporate sector in the US added in June. In May, that was still 278,000, much better than expected. Later this week, the US Department of Labor will also publish data on job growth and unemployment for the last month.
The situation in the US labour market plays an important role in the interest rate decision of the Federal Reserve. The Fed has raised interest rates several times to curb high inflation, but those hikes create headwinds for the economy. Strong job growth indicates that there is no question of a strong economic downturn yet. On the other hand, weakening could fuel fears of a recession among traders.
Investors will continue to look forward to the minutes of the US central bank. They were concerned about the last interest rate meeting in June when it was decided to pause interest rate hikes. The minutes may contain more clues as to whether or not the Fed will raise interest rates at its next meeting in late July.
Shell will release a trading update on its performance on Friday in the second quarter of this year. The oil and gas group recently announced that it wanted to reward shareholders substantially by working more efficiently and paying closer attention to costs. For example, Shell wanted to increase the dividend for the second quarter by 15 percent. The plans are not without controversy. Critics fear the agenda will be at the expense of Shell’s greening.