Like Covfefe, why are people so obsessed with autocorrect? That was a text I sent to a group that autocorrected a word when I said I was doing laundry. I still get texts “which winter be done till 9” years later.
Another potential quiet week for the markets is upon us, but Trump is always up for a “hold my beer” moment. On the economic front we have Factory Orders and ISM Non-Manufacturing PMI. Additionally, investors will watch to see how President Trump will continue to destroy the environment.
ECB Interest Rate Statement: On Thursday (6/8), Super Mario Draghi’s next stop in his European tour is back in Brussels at the ECB for their interest rate statement. Last week, he announced that interest rates would be staying at extraordinarily low levels for the time being, so nobody expects him to announce that they are raising them. So unless he makes an announcement of some change in monetary policy, expect the status quo with the markets.
British Elections: The UK is scheduled to have a “snap” general elections on Thursday (6/8). In the last few weeks, the race has become much tighter for Theresa May’s party, the Tories, with the potential to lose a majority in Parliament. The latest poll had the Conservative Party ahead of Labour by 8%, compared to 20% a few weeks back. Leading up to the election, the British Pound will react back and forth. If the Tories win and keep their majority, expect the British Pound to strengthen. If they lose the majority in parliament, we can expect the Sterling to fall.
Oil: The US oil rig count has been up 20 weeks in a row. This has helped to drive the price of oil lower, along with OPEC’s agreement and the massive global glut. To begin the week, West Texas crude and Brent crude ae both trading below $50 per barrel. Investors will watch to see if US oil rigs do go up again on Friday (6/9) which would put additional downward pressure on oil.
Services PMI: PMI readings from across the globe are due out this week. Traders will watch these readings as to see if the Trump rhetoric around protectionist policies resonates. Any unanticipated jump in a reading could send the markets higher and their respective currency stronger.
Fed Blackout Period: June 3rd started the blackout period for the Federal Reserve to comment on monetary policy or the economy. So this week, we will have no Fed speakers make any market moving statements. The Federal Reserve is scheduled to meet next week with an interest rate statement on Wednesday June 14th. Odds makers have a rate hike at that meeting at 92%.
June 6 D-DAY: Tuesday (6/6) is the 73rd anniversary of the Normandy Landings on D-Day, leading to the liberation of Europe from the Nazis. We should all be thankful for the sacrifices that generation made so we can have a President that tweets random stuff in the middle of the night, have pointless arguments on Twitter and Facebook, have a man whine about not being able to see Wonder Woman in a movie theatre filled with all women, and post pictures of the food we’re about to eat. Attached is a picture of the NY Post from that day.