While the market’s focus moved on to US company earnings last week, spurring a strong rebound, investors received another reality check in the form of the first-quarter GDP and core PCE (personal consumption expenditure) figures.

GDP grew at the slowest rate in two years while the PCE came in sticky as expected, presenting the Federal Reserve with an unwelcome combination as it prepares to meet for two days on Tuesday and Wednesday as Shares goes to press.

Confusing matters further, while the annualised GDP growth figure of 1.6% disappointed the market, which was primed for a 2.1% increase, consumption of services was the strongest since the first half of 2021 and service-sector inflation is one of the Fed’s major bugbears.

Also before Shares goes to print are the US JOLTS (job openings) figures, which are an important guide to the strength of the labour market, as well as the so-called ‘quit rate’ which shows how easy it is for workers to find better jobs at higher wages.

Sticking with US economic data, the week ends with non-farm payrolls which have been a source of stock market volatility in previous months.

There is also a swathe of service-sector PMIs with the UK, the US and Europe all expected show continued expansion, while the focus in the coming week will be on a round of UK house price surveys, which seem to be pointing upwards again, and retail sales statistics which last time surprised to the upside.

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