The most important indicators for this week are the flash manufacturing PMIs. Many policymakers use the reports during their decision-making process.
Falling retail sales increase concerns about US companies. Weaker sales could hamper their revenues and profit margin.
According to data provided by the U.S. Bureau of Labor Statistics, the US consumer price index, or inflation index, fell 0.1% in May 2017.
Japan’s services PMI stood at 53 in May 2017—compared to 52.2 in April 2017. It met the market’s expectations of 53.
The United Kingdom’s weaker services PMI was due to slower improvement in new business orders, domestic demand, and export orders in May 2017.
The final Eurozone services PMI stood at 56.3 in May 2017—compared to 56.4 in April 2017. It beat the market’s preliminary estimate of 56.2.
The final Markit France services PMI stood at 57.2 in May 2017—compared to 56.7 in April 2017. The PMI was below the initial estimate of 58.0.
According to data provided by Markit Economics, the final Markit Germany services PMI (purchasing managers’ index) stood at 55.4 in May 2017.
The May US services PMI report indicated improved business conditions in the US (SPY) (IWM). The PMI was at 53.6 in May—compared to 53.1 in April 2017.
Global investors should monitor economic indicators to understand conditions in the global economy. Indicators shed light on a country’s economic health.
On Friday, June 16, the Bank of Japan (or BOJ) left its policy rate and economic assessment unchanged.
The euro (FXE) remained in a narrow trading range against the US dollar (UUP) between the levels of 1.130 and 1.115 for the last five weeks.
The British pound (FXB) fell against most of the major currencies in the previous week as markets digested the surprisingly hawkish tone of the Bank of England’s (or BOE) monetary policy statement.
The US dollar (UUP) index continued to be confined to a range with the US Dollar Index closing for the week at 97.5, a change of 0.09% as compared to last week’s close of 97.2.
US Treasuries (GOVT) had a mixed response to the FOMC statement and the Fed’s interest rate hike.
The Fed’s decision had a limited impact on the S&P 500 (SPY), which closed last week at 2,433.2, a gain of 0.06% for the week.
In this series, we’ll analyze how different asset classes like bonds (BND) and global equities (VTI) reacted to last week’s central bank events.
The US Dollar Index lost momentum at the end of last week and closed the week almost flat. The US Dollar Index is stable in the early hours on June 19.
Amazon announced that it will acquire Whole Foods. The announcement raised speculations about how the move could change the retail industry.
After losing momentum in the middle of the week after the Fed raised interest rates, the S&P 500 closed the day with minute profits on June 16.