What will drive the markets this week?
The previous week concluded with a minor decline in stock markets, signifying the end of a significant week on Wall Street. Investors were pleased with the Federal Reserve’s decision to pause interest rate hikes temporarily and the positive inflation data. European shares reached a three-week high, primarily influenced by luxury and defensive stocks following major central bank policy decisions throughout the week. Across Asia-Pacific markets, Friday witnessed an upward trend as the Bank of Japan maintained its benchmark interest rate at -0.1%. Australia’s S&P/ASX 200 experienced a substantial one-day gain of 1.06%, closing at 7,251.2, marking its most significant increase in about two months.
As we move into the current week, trading will be shortened with U.S. markets closed on Monday for the Juneteenth holiday. Key updates on the housing market are expected, including building permits and housing starts for May, as well as the NAHB’s Housing Market Index for June. Federal Reserve Chair Jerome Powell is scheduled to testify before Congress on Wednesday and Thursday, providing insights on monetary policy during his semiannual testimony. On Friday, S&P Global will release the latest Purchasing Managers’ Index (PMI) reading for June. Notable earnings reports are also anticipated from FedEx, Accenture, Darden Restaurants, and BlackBerry.
Events expected to move the markets this week
Monday, June 19
- U.S. markets closed for holiday (Juneteenth)
- Sigma Lithium Corp. (SGML) reports earnings
- NAHB Housing Market Index (June)
Tuesday, June 20
- FedEx Corporation (FDX), Freedom Holding Corp. (FRHC), and La-Z-Boy Inc. (LZB) report earnings
- Housing Starts (May)
- Building Permits (May)
Wednesday, June 21
- KB Home (KBH) and Winnebago Industries Inc. (WGO) report earnings
- Fed Chair Powell testifies to House panel
Thursday, June 22
- Accenture (ACN), Darden Restaurants Inc. (DRI), FactSet Research Systems Inc. (FDS), Commercial Metals Company (CMC), BlackBerry Ltd. (BB), and GMS Inc. (GMS) report earnings
- Fed Chair Powell testifies before the U.S. Senate
- Chicago Fed National Activity Index (May)
Friday, June 23
- CarMax Inc. (KMX) reports earnings
- S&P Global Composite PMI - Flash Estimate (June)