- More US inflation data
- FOMC monetary policy meeting
- Bank of England rate decision
Monday 13th June
We finished last week with the latest update on US inflation with the Consumer Price Index (CPI). This week begins with a clutch of second order data releases starting with Japan’s BSI Manufacturing Index. From the Euro zone we have Italian Unemployment. From the UK we have Construction Output, GDP, Goods Trade Balance, Index of Services, the NIESR GDP Estimate, and Industrial and Manufacturing Production. For the first quarter earnings season, today’s top reports come from Staffing 360, Azure Power, Oracle Corp and Wall Financial.
Tuesday 14th June
From Australia we have the NAB Business Confidence. Then there’s Japanese Industrial Production. From the Euro zone we have German final CPI and WPI, then the latest ZEW Economic sentiment surveys. From the UK we have the Claimant Count Change, Average Earnings, and the Unemployment Rate. As with the US, the UK’s jobs data continues to be encouraging. Last month the Unemployment Rate fell to 3.7% – closing in on the record of 3.4% from December 1973. Of course, this tightness in the labour market is contributing to upside inflationary pressures. Later in the day, we have another update on US inflation in the form of Producer Prices. This is the change in the price of finished goods and services sold by producers, so helps to show whether producers are managing to pass on price increases to consumers. Significant earnings reports include Blackline Safety, Centogene, and Lennar Corp.
Wednesday 15th June
We kick off with Core Machinery Orders from Japan. Then we have Chinese Retail Sales, Fixed Asset Investment, Industrial Production, and the Unemployment Rate. It will probably be too early to see improvements in this data due to the easing of lockdown restrictions across China and Shanghai in particular. From Switzerland we have SECO Economic Forecasts, and PPI. Then there’s the Euro zone Trade Balance and Industrial Production followed by Canadian Housing Starts. Things pick up a couple of gears in the afternoon with the release of US Retail Sales, Business Inventories, Crude Oil Inventories, and the Empire State Manufacturing Index. These are followed by the Federal Reserve’s FOMC rate decision and statement. The expectation is that the US central bank will once again raise rates by 50 basis points, as it did in May. The FOMC will also release its quarterly Summary of Economic Projections. This is where each FOMC member gives their predictions for inflation, the Fed Funds rate, GDP, and Unemployment for the rest of the year and beyond. Analysts will be interested to see if members are anticipating a peak in inflation. Rounding off this is a press conference from Fed Chair, Jerome Powell. First quarter earnings reports come from Smith & Wesson, Marine Products, and Dynagas.
Thursday 16th June
Overnight sees the release of Australian unemployment data, along with a Bulletin from the Reserve Bank of Australia (RBA). The latter comes in the aftermath of the RBA’s decision last week to raise its key Cash Rate by 50 basis points, more than expected. Then we have a rate decision from the Swiss National Bank (SNB). Some analysts are wondering if this could be the time when the SNB finally makes a move towards normalising its key Policy Rate which stands at -0.75%, the lowest in the developed world. Most think it won’t. The Bank of England (BoE) will also announce its latest rate decision and deliver its Monetary Policy Summary. Inflation is also a troublesome issue for the BoE given high inflation and the ‘cost of living’ crisis. Could this meeting mark the Bank’s fifth consecutive rate increase? We round off the day with some second order data releases from the US, including Weekly Unemployment Claims, the Philly Fed Manufacturing Index, Building Permits, and Housing Starts. Today’s major earnings reports include Beyond Air, Adobe, and Kroger.
- Bank of England forecasts UK inflation to hit 10% in second half of the year
- Four inflation busting stocks to watch this summer
- 7 Investment Trusts for a higher inflationary environment
- Why should stock market investors worry about inflation?
Friday 17th June
Overnight, the Bank of Japan will announce its decision on interest rates and follow this up with a press conference. Then we have Final CPI from the Euro zone amid the backdrop of ECOFIN meetings. From the US we have Capacity Utilisation, Industrial Production, and the CB Leading Index.
David Morrison is an Analyst with Trade Nation. Trade Nation was set up with the specific remit to help customers realise their trading goals by changing the way they engage with the financial markets. As well as providing full transparency and making sure all customers get a fair deal, Trade Nation is fully regulated. This means customers can be confident they’re getting the trading experience they deserve. Visit www.tradenation.com to find out more
