Kickin' the Can: Part I

Expect to see more can kickin in future blogs so I will start using Roman Numerals in the title every time we have another problem which doesn't get solved and pushed down the road.

 

Highlights This Week

As the Greek negotiations look to be in the final phases, traders this week will be watching Janet Yellen’s testimony before Congress, while earnings season continues to wind down with the final Dow 30 component reporting this week

On Tuesday and Wednesday (2/24-25), FED Reserve Chair Janet Yellen testifies before the House Financial Services Committee. Investors will be listening for any hints as to when the Fed may raise interest rates

Conversely, ECB President Mario Draghi will be speaking on the other side of the pond before the European Parliament. During his speech, traders will be listening for more clarity on the ECB’s upcoming bond buying program and if there may be additional quantitative easing in the future

Furthermore, traders will be listening to the ECB’s stance on Greece and how that may affect future issues with other countries including Spain and Portugal

On Friday (2/27) multiple countries around the globe report CPI which includes Australia, Japan, Germany, and France. If CPI ratings come in lower than expected and point to deflationary levels, we could see additional steps by central banks to help their respective nation’s economies including lowering interest rates or another round of quantitative easing

Chinese markets reopen on Wednesday (2/25) after the week long Chinese New Year. Economic data releases will also be restarted

Last Friday (2/20) Greece and its Euro zone creditors reached an agreement to extend its bailout for four months. On Monday, (2/23) Greece will present a list which must be approved by international lenders to secure the extension as part of the agreement. If the agreement goes through, expect the same type of volatility in the markets four months from now during the next round of negotiations. If the deal collapses, the prosperity of a Greek exit comes back to the forefront, which will roil the global markets

We have a heavy economic data filled week with 4Q GDP Estimate, Consumer Confidence, New Home Sales, CPI, and Durable Orders among the key data driven points

 

MONDAY (2/23)

  • 10:00 AM ET – Existing Home Sales - Jan
  • German IFO Business Climate
  • Chinese banks will be closed in observance of the Spring Festival
  • Earnings: Express Scripts, Dish Network

 

TUESDAY (2/24)

  • 10:00 AM ET – Consumer Confidence - Feb
  • Great Britain CPI
  • Chinese banks will be closed in observance of the Spring Festival
  • European Final CPI
  • Federal Reserve Chair Janet Yellen speaks
  • ECB President Mario Draghi speaks
  • Bank of Canada Governor Stephen Poloz speaks
  • Earnings: Comcast, Home Depot, Hewlett-Packard, Valeant Pharmaceuticals, Ecolab, Macy’s

 

WEDNESDAY (2/25)

  • 10:00 AM ET – New Home Sales - Jan
  • 11:00 AM ET – Crude Oil Inventories
  • Federal Reserve Chair Janet Yellen speaks
  • ECB President Mario Draghi speaks
  • China HSBC Flash Manufacturing PMI
  • Earnings: Lowe’s, Target, Salesforce 

 

THURSDAY (2/26)

  • 8:30 AM ET - Weekly Jobless Claims
  • 8:30 AM ET – Durable Orders - Jan
  • 8:30 AM ET – CPI – Jan
  • New Zealand Trade Balance
  • Australia Private Capital Expenditure
  • Great Britain 2nd Estimate GDP
  • ECB Targeted LTRO
  • Canada Core CPI
  • FOMC Member Dennis Lockhart speaks
  • Earnings: Anheuser-Busch, British American Tobacco

 

FRIDAY (2/27)

  • 8:30 AM ET – GDP Second Estimate – Q4
  • 9:45 AM ET - Chicago PMI - Feb
  • 9:55 AM ET - Michigan Sentiment - Feb
  • 10:00 AM ET – Pending Home Sales - Jan
  • ANZ Business Confidence
  • German Prelim CPI
  • Great Britain Consumer Confidence
  • Japan Core CPI