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Investors worried about the risk of a new global recession are hoping that data over the coming week will show that some momentum remains in the world economy, eight years into its slow recovery from the financial crisis, Reuters reported.
The Group of 20 economies were unable to agree on a joint push for new stimulus measures at a meeting which ended on Saturday, turning attention instead to upcoming business surveys from China, Japan, Europe the United States, according to Reuters.
Central banks in Europe and Japan may inject a little more stimulus into their economies later in March. But the Federal Reserve and the Bank of England look likely to sit tight for now.
"It seems economic data will have to bear the burden of stabilizing sentiment," economists at Barclays said in a note to clients on Friday, according to the report.
A first reading of inflation in February for the euro zone on Monday will help shape expectations of how much further below zero the European Central Bank is likely to push its deposit rate the following week.
U.S. payrolls figures on Friday may help ease fears about the world's biggest economy, which appeared to stumble soon after the Federal Reserve felt confident enough to hike interest rates for the first time in nearly a decade in December, Reuters writes.
Markets have turned calmer in recent days, helped by stronger-than-expected U.S. inflation figures. But the impact of plunging share prices has shaken the confidence of many households and businesses in rich countries, as reported.
Economists at Citi have cut their forecast for global economic growth this year to 2.5% from 2.7% due to slowing activity in developed economies. They said growth could come in below 2% -- equivalent to a global recession -- because of the chance of weaker growth among emerging economies.
Political risks are also on the rise. With a referendum in Britain now set for June 23 on its membership of the European Union, sterling has touched seven-year lows against the U.S. dollar. A decision to leave the EU could hurt growth more in Europe as well as Britain, economists say.
Economists at SocGen said they saw the possibility of a so-called Brexit as their top risk for the global economy, topping the chance of a severe economic slowdown in China.