Investing.com - In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report for April to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016. There is also ISM manufacturing data on Wednesday and ISM services on Friday as traders search for more clues on the timing of the next U.S. rate hike.
Market players will also be focusing on the outcome of Thursday’s European Central Bank meeting as well as new quarterly forecasts that will signal whether the bank is getting closer to its inflation target.
Elsewhere, market players will be looking out for data on China's manufacturing sector due on Tuesday, amid ongoing concerns over the health of the world's second biggest economy.
Meanwhile, oil traders are will be looking ahead to the Organization of Petroleum Exporting Countries highly-anticipated meeting on Thursday.
Ahead of the coming week, Investing.com has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.
1. U.S. nonfarm payrolls report
The U.S. Labor Department will release its May nonfarm payrolls report at 12:30GMT, or 8:30AM ET, on Friday.
The consensus forecast is that the data will show jobs growth of 161,000 last month, following an increase of 160,000 in April, the unemployment rate is forecast to dip to 4.9%, while average hourly earnings are expected to rise 0.2% after gaining 0.3% a month earlier.
An upbeat employment report would help support the case for a summer rate hike by the Federal Reserve.
2. U.S. ISM PMI surveys
The U.S. Institute of Supply Management is to release data on May manufacturing activity at 14:00GMT, or 10:00AM ET, on Wednesday. The gauge is expected to inch down 0.3 points to 50.5. Anything above 50.0 signals expansion.
Meanwhile, the ISM is to report on May service sector activity on Friday, amid expectations for a modest decline.
3. European Central Bank policy meeting
The European Central Bank's interest rate decision is due at 11:45GMT, or 7:45AM ET, on Thursday, with most of the focus likely to be on President Mario Draghi's press conference 45 minutes after the announcement as well as updated inflation and growth forecasts.
The consensus is that the ECB will leave interest rates on hold and reaffirm its focus on implementing the stimulus package announced in March, which included purchases of corporate bonds and a new round of so-called TLTRO loans for banks, both due to kick off in June.
4. China manufacturing PMIs
The China Federation of Logistics and Purchasing is to release data on May manufacturing sector activity at 01:00GMT on Wednesday, or 9:00PM ET Tuesday, followed by the Caixin manufacturing index at 01:45GMT, or 9:45PM ET.
The official China's manufacturing purchasing managers' index is forecast to inch down 0.1 points to 50.0 in May, while the Caixin survey is expected to dip to 49.3 from 49.4 in the preceding month. A reading below 50.0 indicates industry contraction.
5. OPEC meeting
The Organization of Petroleum Exporting Countries will meet in Vienna on Thursday to review their output strategy. Most market analysts expect the oil cartel to keep their production quota unchanged amid rising prices.
The oil cartel’s most recent meeting in Qatar in April ended without agreement to freeze output at current levels due to Saudi Arabia's insistence that Iran be part of the agreement.
Stay up-to-date on all of this week's economic events by visiting: http://www.investing.com/economic-calendar/