Nothing like giving terror sponsors, and some may be good sponsors, a platform to speak from.
New York will be turned into a parking lot for the United Nations General Assembly as investors concentrate on this week’s Fed statement. On the economic front, we have Building Permits and the Philly Fed. The North east will also keep an eye out to the Atlantic as Hurricane Jose threatens the eastern seaboard.
Federal Reserve: On Wednesday (9/20), the Fed will release a statement where everybody will be waiting to see if the Federal Reserve decides to raise interest rates again. Right now, the odds are very low for the Fed to raise rates as we have already seen 2 interest rate raises this year. If the Fed does raise rates for the third time in 2017, we can expect to see significant volatility following the statement release. Some of the results of an interest rate increase include a strengthening in the US Dollar, a spike in Utilities & Financial companies, a weakening of foreign currencies, oil and metals. We would also see mortgage rates go up as Treasury yields will increase. This statement will be followed by a press conference with FOMC Chair Janet Yellen taking questions. However, the statement may potentially announce detail timing and amounts of how much the Fed will start unwinding their balance sheet. If they do not raise rates at this meeting, they will have two more times this year to raise rates.
Bank of Japan: On Thursday (9/21), the Bank of Japan will release a policy statement. Investors are not expecting any massive monetary policy shift but we may potentially see a shift its bond yield target. Any unexpected monetary tightening by the bank would strengthen the Japanese Yen and send markets lower.
The UN General Assembly: New Yorkers most hated time of the year when every single world leader descends on Manhattan to cause gridlock throughout Manhattan and spew empty rhetoric. We usually do not see headlines out of the event, but with Trump and every world leader making speeches, we could see a geo political move that could affect foreign exchange and the markets as whole. If not, it’ll just be another week of New Yorkers cursing about all the delays and closures. Finally, the MTA has a legitimate excuse about being terrible.
Rosh Hashanah: On Thursday (9/21), markets in the US will see subdued volume for the Jewish holiday. Because of the lighter than normal volumes, we can potentially see outsized moves in individual stocks if they have a lack of liquidity.
Insurers and Reinsurers: Following the latest hurricanes, insurers and reinsurers will continue to assess the damage as additional storms are forecasted to hit the Caribbean. The worse these storms turn out to be and the higher the damage assessments, the harder those stocks may be hit.
New Zealand Elections: Voters down under in the country of 4.6M will be voting to elect New Zealand’s 52nd Parliament. From my understanding, the National Party is in the lead with Labour in 2nd. Should Labour win, expect taxes to go up, which could send their market lower. If the National party wins, expect the staus quo. In either outcome, we will likely see a spike in Tui and Speight sales.
Respect-for-the-Aged Day: Japan’s banks will be closed on Sunday (9/17) for, wait for it, Respect-for-the-Aged Day. A holiday to celebrate old people. Not sure how much the people this holiday is intended for can actually celebrate it.