This Week Focus Point 20-24 June 2022
Following last week’s stock market sell-off, investors in the United States will be watching numerous Fed officials’ statements, including Fed Chair Powell’s testimony before the Senate Banking Committee and the House Financial Services Committee. In addition, flash PMI surveys for the United States, the United Kingdom, the Eurozone, Japan, and Australia will be keenly monitored. Finally, CPI statistics will be given for the United Kingdom, Canada, Singapore, Japan, and Malaysia.
Traders in the United States will be watching for appearances by numerous Fed officials. Following a 75 basis point raise in the Fed funds rate last week, Fed Chair Powell will testify before the Senate Banking Committee on Wednesday and the House Financial Services Committee on Thursday. Banks will also get the findings of the central bank’s yearly stress test. The economic calendar is sparse on data this week, with existing and new house sales, flash S&P Global PMIs, and final Michigan consumer sentiment. The stock and bond markets in the United States will be closed on Monday in observance of the Juneteenth holiday.
Canada’s inflation rate and retail sales will be intriguing to watch from afar in America. Retail sales, the mid-month CPI, and the interest rate decision will all be under the limelight in Mexico.
The economic calendar in the United Kingdom is jam-packed with important statistics, including inflation, retail sales, Gfk consumer confidence, and flash Global S&P PMIs. In May, the CPI in the UK is predicted to rise 9.1% from a year ago, accelerating from a 40-year high of 9% in April, indicating that consumers’ living standards are continuing to be squeezed.
In other parts of Europe, flash PMI data for the Eurozone, Germany, and France will be in focus, with projections indicating that the bloc’s manufacturing activity growth fell to a 19-month low at the end of the second quarter, and the services sector grew at its slowest pace in four months. Consumer confidence in the Eurozone is expected to rebound in June from a two-year low reached in April, but the Ifo business climate indicator in Germany is expected to fall slightly, owing to worsening current conditions.