June 12, 2023

Markets:

Stock futures rose Monday as traders hope the Federal Reserve has enough ammunition to skip a rate hike.

Investors will receive fresh inflation data Tuesday in the form of the latest consumer price index report. On Wednesday, the Fed will issue its latest monetary policy decision. Economist polled by Dow Jones forecast price pressures increased 0.1% in May and 4% year-over-year.

Markets have come to expect that the Fed will skip another rate increase at this week’s meeting, with traders Monday morning pricing in a 76% chance that there will be no hike. Tuesday’s inflation data could help reinforce the case that inflation is subsiding, as economists expect the consumer price index to show inflation dropping to a 4% annual rate in May.

People’s Bank of China governor Yi Gang said that he expects China’s second quarter gross domestic product to be “relatively high” thanks to a low base effect.

Global central bank meetings will be under the spotlight this week, including the U.S. Federal Reserve, the Bank of Japan as well as the European Central Bank.

On Monday, Japan’s producer price index and China’s new yuan loans are scheduled to be released. Indonesia’s consumer confidence, Malaysia’s retail sales and India’s industrial production and inflation rates will be published as well.

Tuesday will be a market holiday in South Korea and Indonesia will publish its retail sales for the month of April. The U.S. consumer price index for May will be released as the Federal Open Market Committee (FOMC) takes place on the 13 to the 14th.

Portfolio:

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