Week Ahead

After last week’s sell-off in the equity markets, in the US, investors will be paying attention to the several speeches by Fed officials including Fed Chair Powell’s testimonies before the Senate Banking Panel and House Financial Services Committee. Also, flash PMI surveys for the US, UK, Eurozone, Japan, and Australia will be closely watched. Finally, CPI data for the UK, Canada, Singapore, Japan, and Malaysia is set to be released.

In the US, traders will keep a close eye on appearances by several Fed officials. Fed Chair Powell testimony before the Senate Banking panel on Wednesday and House Financial Services Committee on Thursday will take the spotlight after a 75bps hike in Fed funds rate led to sharp sell-off in equity markets last week. Also, the central bank will release the results of its annual stress test to banks. On the data front, the economic calendar is relatively light, with existing and new home sales, flash S&P Global PMIs and the final Michigan consumer sentiment. US stock and bond markets will be closed Monday for the Juneteenth holiday.

Elsewhere in America, it will be interesting to follow Canada inflation rate and retail sales. In Mexico, retail sales, mid-month CPI, and interest rate decision will take the spotlight.

In the United Kingdom, the economic calendar is packed with key data including inflation rate, retail sales, Gfk consumer confidence and flash Global S&P PMIs. CPI in the UK is expected to surge 9.1% from a year earlier in May, accelerating from a 40-year high of 9% hit in April in another sign consumers’ living standards continue to be squeezed.

Elsewhere in Europe, flash PMI data for the Eurozone, Germany and France will be in the spotlight, with forecasts suggesting the bloc’s factory activity growth hit a 19-month low at the end of the second quarter and the services sector expanded the least in four months. However, consumer confidence in the Euro Area probably continued to recover in June from a 2-year low hit in April while the Ifo business climate indicator in Germany is set to decline slightly, mainly due to a deterioration in current conditions. Other key data to follow include: Eurozone construction output and current account; Germany producer prices; Switzerland balance of trade and current account; and Turkey consumer and business survey. Also, the week ahead finds central bank meetings unfolding in Turkey, Norway, Czech Republic and Iceland.

In Australia, flash PMI figures for June will come out but the main focus will be on the minutes of the RBA’s latest meeting. In Asia, People’s Bank of China is set to give us an update on the main 1-year and 5-year LPR rates. Also, central banks in Indonesia and Philippines will be deciding on the course of monetary policy. Finally, In Japan, CPI data for May and June PMI figures will be in the spotlight while Taiwan will release May export orders.