WWJD II

What Would Janet Do????

Intro: Investors have an important week ahead as they turn their attention to the Federal Reserve. On the economic calendar Building Permits, CPI and the Philadelphia Fed are scheduled to report. We will also continue to track the latest developments on Greece

Fed & Rate Fears: On Wednesday, the Fed will release a statement where everybody will be waiting to see if and when rates will rise. If the Fed does raise rates, we can expect to see significant volatility following the statement release. Some of the results of an interest rate increase include a strengthening in the US Dollar, a spike in Utilities & Financial companies, a weakening of foreign currencies, oil and metals. We would also see mortgage rates go up as Treasury yields will increase. If they decide not to raise rates, traders will look for hints as to the timing of a rate hike.

Central Banks: Last week, two Central banks (New Zealand and South Korea) lowered interest rates. Traders will be listening for announcements of any additional monetary easing to further strengthen their nations’ economies as multiple central banks make statements during the week

Greece: Last Thursday (6/11), the IMF walked out on talks with the Greeks on terms to release additional bailout funds to keep Greece from going into default. Should talks continue to be deadlocked, expect European and US markets to trade lower

Housing Starts: After a stronger than expected retail sales number last week, traders will be watching to see if Housing Starts also come in stronger than expected. If it does, this will imply that consumers are allocating their extra cash to housing

European Court of Justice Ruling: The ECJ is announcing a ruling regarding the constitutionality of the European Central bank’s Outright Monetary Transactions Policy. Should the ECJ rule against the ECB’s policy, we can expect in the future significant issues with bond buying programs pushing yields on European bonds lower

US Treasury Yields: Investors will continue to watch US Treasury yields as last week witnessed the 10 year yield jump to 2.5%. Investors will be monitoring the June FOMC Meeting and comments made thereafter by Janet Yellen

 

MONDAY (6/15)

  • 8:30 AM ET – Empire Manufacturing - Jun
  • 9:15 AM ET – Industrial Production – May
  • 9:15 AM ET – Capacity Utilization – May
  • Canada Manufacturing Sales
  • ECB President Mario Draghi Speaks

 

TUESDAY (6/16)

  • 8:30 AM ET – Housing Starts – May
  • 8:30 PM ET – Building Permits - May
  • Reserve Bank of Australia Monetary Policy Meeting Minutes
  • Great Britain CPI
  • European Court of Justice Ruling
  • German ZEW Economic Sentiment
  • Earnings: Adobe Systems

 

WEDNESDAY (6/17)

  • 10:30AM ET – Crude Oil Inventories
  • 2:00 PM ET – FOMC Rate Decision
  • 2:30 PM ET – FOMC Press Conference
  • New Zealand Global Dairy Trade
  • Great Britain Unemployment Rate
  • European Final CPI
  • Earnings; Oracle, FedEx

 

THURSDAY (6/18)

  • 8:30 AM ET - Weekly Jobless Claims
  • 8:30 AM ET – CPI - May 
  • 8:30 AM ET – Philadelphia Fed – June 
  • 10:00 AM ET – Leading Indicators - May 
  • New Zealand GDP
  • Swiss National Bank Libor Rate
  • Swiss National Bank Press Conference
  • Great Britain Retail Sales
  • ECB Targeted LTRO
  • Eurogroup Meetings
  • Earnings: Kroger

 

FRIDAY (6/19)

  • Bank of Japan Monetary Policy Statement & Press Conference
  • ECONFIN Meetings
  • Canada CPI and Retail Sales