Global equity markets mostly lowerJuly 07, 2014 Posted by: Pete Karabatos
Global equities are trading lower today and yields on U.S. treasuries are higher as concern mounts about the timing of the Fed’s first rate hike. U.S. inflation figures have crept higher, hitting the Fed’s 2% target, and the unemployment has fallen to 6.1%, below the Fed’s initial target of 6.5%. Tempering the timing of the rate hike expectations, many of the recent employment gains have been through part time jobs, wage pressures is in check, and the percentage of Americans who are either unemployed or underemployed is at 12.1%. The USD is off slightly against most other currencies and gold is trading lower.
• The Bank of Japan releases text from Governor Kuroda’s speech in Tokyo at the branch managers' meeting in which he stated that the BOJ’s easing is having the intended impact and that the financial system remains stable. The BOJ will likely keep policy loose until inflation stabilizes at 2%.
• The PBOC is looking at unconventional tools to support economic growth to achieve its 7.5% target including 100 billion CNY in loans earmarked for agriculture and small business, a plethora of public projects, and the injection of significant liquidity into the system.
• German industrial output fell in May, coming in at -1.8% month/month, significantly worse than the 0% change forecast.
• Sweden’s central bank surprised the market last week with a rate cut to .25%, a record low.
07/08 GBP: Industrial Production (May)
07/08 GBP: Manufacturing Production (May)
07/09 EUR: France Industrial Production (May)
07/09 EUR: France Manufacturing Production (May)
07/09 EUR: France CPI (June)
07/09 AUD: Unemployment Rate (June)
07/09 JPY: Machine Orders (May)
07/09 JPY: Domestic CGPI (June)
07/10 USD: Wholesale Inventories (June)
07/10 GBP: Bank of England Bank Rate
07/10 AUD: Home Loans (May)
07/10 CAD: New Housing Price (May)
INR 60.0225Read More