Key Economic Events and Updates for Monday, June 17, 2024: Federal Reserve, ECB, China Data, and More
The global financial markets are abuzz with activity as key central bank officials and economic data take center stage on Monday. Federal Reserve speakers, including Williams, Harker, and Cook, are set to address the public, while European Central Bank President Lagarde and chief economist Lane will also be speaking.
In Australia, the latest jobs data for May shows a decline according to the ANZ private survey, with a 2.1% decrease month-on-month and an 18.1% drop year-on-year. Meanwhile, the Bank of Japan Governor Ueda is scheduled to appear in parliament on Monday and Tuesday.
China is facing internal and external constraints as interest rate cuts are being considered. Industrial output in May grew by 5.6% year-on-year, slightly below expectations, while retail sales exceeded forecasts with a 3.7% increase. However, new home prices in China saw a significant decline in May.
The People’s Bank of China has set the Medium-term Lending Facility rate at 2.5%, indicating stability in the lending market. Additionally, the USD/CNY reference rate has been set at 7.1149.
In other news, the Reserve Bank of Australia is expected to maintain the cash rate at 4.35%, marking a 12-year high. New Zealand’s service PMI for May is at a low of 43.0, indicating a challenging economic environment.
UBS has warned of an intensifying trade war if Trump wins the 2024 election, while the ECB is focused on keeping inflation below 2% into 2026. The S&P500 Index forecast has been revised higher by Evercore, with a potential rise to 7000 by the end of 2025.
Overall, the global financial landscape is dynamic and full of uncertainties, with central banks and economic indicators playing a crucial role in shaping market trends. Stay tuned for more updates as the day unfolds.
