Thursday preview: ECB, US jobs market in focus

(Sharecast News) - Investors' focus on Thursday will be on the European Central Bank as policymakers in Frankfurt meet to decide on interest rates. Consensus is that they will decide upon an 8th cut in a row in the deposit rate to 2.0%, despite core consumer prices still being comfortably above their target level.

That, nevertheless, against the backdrop of a strengthening currency, as the White House pushes its trade tariffs and Brussels promises to ramp up fiscal spending.

Commenting on the current situation facing the ECB, City analyst Michael Hewson said: "Of course, the ECB also has to be aware that its own politicians could exacerbate the problem if they choose to slap further tariffs on US goods if trade talks break down.

"Never underestimate the ability of politicians to make a bad situation worse, because of misplaced ego or slight.

"[...] The latest ECB bank lending survey showed that demand for credit was slowing which suggests that the problem isn't the level of rates but something more structural. These problems have been well documented for years, with ex ECB President Mario Draghi outlining in detail what needs to be done, however it's highly unlikely that many of them will see the light of day as the bloc becomes more EU sceptic."

Hewson also emphasised the uncertain backdrop in which ECB rate-setters were acting.

Stateside meanwhile, and ahead of the May non-farm payrolls report due out during the following session, the market spotlight would be on the latest weekly unemployment claims figures.

Also scheduled for release in the US was consultancy Challenger's tally of job cut announcements during the month of May, as well

as quarterly labour productivity and unit labour cost data covering the first three months of the year.

On home shores, S&P Global would publish its construction sector Purchasing Managers' Index for May.

Friday 06 June

INTERIM DIVIDEND PAYMENT DATE

James Halstead, Seneca Growth Capital Vct

QUARTERLY PAYMENT DATE

Chenavari Toro Income Fund Limited NPV, Greencoat Renewables (CDI), Seplat Energy (DI), TwentyFour Select Monthly Income Fund Limited

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (GER) (07:00)

Gross Domestic Product (EU) (10:00)

Import Price Index (GER) (07:00)

Industrial Production (GER) (07:00)

Non-Farm Payrolls (US) (13:30)

Producer Price Index (EU) (10:00)

Retail Sales (EU) (10:00)

Unemployment Rate (US) (13:30)

GMS

Spirent Communications

FINALS

Bango

ANNUAL REPORT

Pennant International Group

AGMS

Canal+ S.A (CDI), Fiinu, One Media IP Group, Pennant International Group

UK ECONOMIC ANNOUNCEMENTS

Halifax House Price Index (07:00)

FINAL DIVIDEND PAYMENT DATE

Barr (A.G.), EnQuest, Irish Continental Group Units (Comp) (CDI), SThree, Vesuvius, Wickes Group