Weekly Reports | Jun 12 2015
For a more comprehensive preview of next week’s events, please refer to “The Monday Report”, published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.
By Greg Peel
The focus of next week’s market activity will be the Fed policy meeting and statement due on Wednesday night. As it’s a quarterly meeting, Fed chair Janet Yellen will also hold a press conference.
For the past couple of weeks, US bond yields have started to “price in” a Fed rate rise, albeit the impetus for initial bond selling has been a rise in German yields. The Fed will possibly take heart that the US ten-year rate has risen from under 2% to almost 2.5% without causing any major volatility in US stock markets. With recent employment and retail sales data suggesting an improving economy, will Yellen take the opportunity of the June meeting to set a rate rise timetable?
Next week in the US also sees housing sentiment and starts, industrial production and inflation numbers along with the Empire State and Philly Fed activity indices. The Fed meeting will offer the most likely source of any market volatility but Friday’s quadruple witching expiry also throws up the possibility of some sharp moves.
The eurozone’s ZEW investor survey will also be in focus next week and on Friday the Bank of Japan will hold a policy meeting. New Zealand will release its March quarter GDP on Thursday.
In Australia, attention will be drawn to the minutes of the June RBA meeting. The Aussie dollar has been up and down like a yo-yo of late on every little turn in thinking with regard another rate cut, or not.
Australia also sees a quarterly expiry day this week, on Thursday, for futures and index options.
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