The next week may dominate the five major themes of the global market

The following five topics are likely to dominate the minds of investors and traders in the coming week:

1 / Powell nomination if confirmed, will face serious challenges

The U.S. Senate Finance Committee will hold a hearing on Tuesday to confirm that Jerome Powell succeeds Yeh Lun at the helm of the Federal Reserve Board (FED / FED). Powell will face serious challenges if the nomination is confirmed as expected.

The United States, the world's largest economy, is currently almost horsepower at full capacity, at a record length of expansion, with unemployment hitting the lowest in nearly half a century and the stock market is at historic highs.

However, the growth of wages and prices is slower than the level the Fed wants. Household debt is at a high level and its expansion is coming to an end. These are the concerns that have been highlighted by the fact that the yield curve of the U.S. Treasury is showing its flattest form in 10 years.

No matter what caused the curve of the U.S. bond yield to levee in recent weeks, the fact remains that the 2-year / 10-year U.S. bond yield curve has only 58 basis points upside down. Yield curve upside down is a typical sign of recession coming.

2 / European political risk renewed

About six weeks or so, the European debts have spent the best of the year. The European Central Bank extended its debt-purchasing plan and economic growth continued to improve, while German Chancellor Merkel and French President Macron seemingly will lead Europe into the next generation of reform.