Over the next five days, the consolidation movement that started recently could possibly continue, particularly in the tech sector. Investors are likely to pay particular attention to new US producer price data towards the end of the week. The upcoming elections in France next Sunday are also likely to be of at least partial interest, especially as Europe is an important trading partner for the United States.
Investors should scrutinize Fed speeches for monetary policy clues
As in the previous week, investors are once again likely to focus on various Fed representatives. Governor Christopher Waller will speak first on Monday (09:00). His colleague Daly from the Fed in San Francisco will follow at 20:00.
The series continues on Tuesday with Governors Bowman (1:00pm/20:10pm) and Cook (6:00pm).
In the middle of the week, the results of the bank stress test could attract interest on the US side (22:30).
Incoming orders for durable goods and GDP likely to weaken
From the perspective of the economic data calendar, things are likely to get really exciting on Thursday with new data on new orders for durable goods (2:30 pm). An increase of just 0.3% is expected for May compared to April, after 0.7% in the previous month.
As these goods are generally associated with higher spending, they could provide a good indication of the health of the US economy.
The final data on US gross domestic product (14:30) is also likely to attract interest. The world's largest economy is expected to have grown by 1.3% in the past quarter, after 3.4% in Q4 2023.
Weak economic signals should tend to favor interest rate cut fantasies in the USA.
As in the previous week, investors should therefore also keep an eye on the weekly initial jobless claims (14:30).
US producer prices could lose momentum - investors hope for interest rate cut signals
New data on US producer prices (core rate) should decide the weal and woe at the end of the week on Friday (14:30). Economists expect an increase of 2.6% for the month of May, after 2.8% in May 2023.
In addition to the publication of consumer confidence (Michigan) for the month of June (16:00), a speech by Governor Bowman (18:00) rounds off the trading week.
