This is a significant week for the United States, with the November employment report set to be released on Friday. However, market sentiment is likely to be influenced by news regarding the timeline for vaccine distribution and concerns over proactive measures to control the spread of the virus following Thanksgiving. Investors will closely monitor testimonies from Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin regarding the CARES Act in Washington. OPEC is expected to delay plans to increase oil production as the week progresses. Meanwhile, eurozone inflation data is likely to bolster expectations that the European Central Bank will enhance economic stimulus at its next policy meeting.

Here’s what you need to know to kick off your week.

Vaccine Distribution Timeline

Three volunteers receiving the COVID-19 vaccine helped the Dow Jones Industrial Average reach 30,000 points, and investors will be closely watching the vaccine rollout.

U.S. health authorities will hold an emergency meeting on Tuesday to allow the Food and Drug Administration to permit medical personnel and those in healthcare facilities to be the first two groups to receive the coronavirus vaccine developed by Pfizer (NYSE: {{7989) | PFE}}) and BioNTech.

The announcement of the meeting indicates that the FDA is close to allowing the distribution of the vaccine, at least to high-risk groups.

The U.S. recorded 12 million COVID-19 cases as of November 21, and health experts warn that travel during the Thanksgiving holiday is likely to lead to a rapid increase in cases.

Non-Farm Payrolls

Concerns that the significant rise in new virus cases and widespread quarantine measures have disrupted the labor market recovery mean that Friday's non-farm payroll figures for November will be closely watched.

Reports are expected to show job growth for the seventh consecutive month, but the consensus forecast is for only 500,000 jobs added, with the unemployment rate expected to drop to 6.8% from 6.9%, still above the 4.5% rate in March before much of the U.S. economy went into lockdown.

There were 638,000 new jobs added in October, the lowest since the job recovery began in May.

The calendar also includes the ISM Manufacturing PMI on Tuesday and the ISM non-Manufacturing PMI, along with the weekly report on initial unemployment claims on Thursday.

Powell and Mnuchin Testify

Jerome Powell, the Fed Chairman, and Steven Mnuchin, the Treasury Secretary, will testify before the Senate Banking Committee on Tuesday and before the House Financial Services Committee.

They will discuss the CARES Act, which Congress passed in March, allocating $2 trillion to the U.S. Treasury to support the Fed's lending programs.

Earlier this month, Mnuchin declined to extend the Fed's lending programs, which the central bank stated were a crucial support for the economy, currently experiencing its worst downturn in a century.

This move has put the Trump administration at odds with the Fed and will add economic stress as Joe Biden prepares to take office as president.

OPEC+ Meeting

OPEC and its allies, including Russia, known as OPEC+, are expected to increase oil production by 2 million barrels per day starting in January to alleviate the drop in demand amid falling prices earlier this year.

Energy analysts now expect those plans to be delayed by at least three months.

While crude oil prices have rebounded to an eight-month high near $50 per barrel, transportation constraints remain due to the COVID-19 pandemic, resulting in persistently high inventory levels alongside increased production from Libya.

Eurozone Inflation Data

Data on Tuesday is expected to show that eurozone inflation fell again in November, with economists predicting a 0.2% year-on-year decrease.

The European Central Bank has already indicated that it expects inflation to be -0.2% year-on-year in the fourth quarter, marking four consecutive months of negative price growth.

This data is expected to underscore the need for further economic stimulus ahead of the ECB's policy meeting in December, where analysts anticipate an extension of the bank's bond-buying program and cheap loans for banks.

SOURCE: investing.com