All eyes will be on the US Federal Reserve monetary policy meeting commencing on Tuesday. US inflation data will also be keenly observed. Monthly sales, production and investment data feature in China.
The week kicks off on Monday in China with money supply and lending data expected.
On Tuesday, the US Federal Reserve begins its two day monetary policy meeting. With core inflation breaching the US Federal Reserve’s 2 per cent target and the unemployment rate at an 18-year low of 3.8 per cent, the Federal Reserve Funds Rate is expected to be increased by 0.25 per cent to 1.75-2.00 per cent target range.
Also on Tuesday US consumer prices, the monthly budget statement, weekly data on chain store sales and a measure of small business sentiment – the NFIB business optimism index – are all released. Core inflation is tipped to increase by 0.2 per cent to 2.2 per cent. Headline consumer prices are forecast to lift by 0.2 per cent to 2.6 per cent due to rising gasoline, shelter and food prices.
On Wednesday in the US, data on producer prices and the weekly mortgage lending figures are expected. The core measure of producer prices (excludes food and energy) stands at a 2.6 per cent annual rate. A 0.2 per cent increase in prices is tipped in May.
On Thursday Chinese investment, production and retail sales are issued for May. The official manufacturing purchasing managers’ index rose to its highest level in nine months in May due to unseasonably warm weather and rising upstream commodity prices. Investment and production are tipped to maintain stable annual growth rates of 7 per cent. Retail sales may be up 9.5 per cent over the year.
Also on Thursday US retail sales, trade (export/import) prices and inventories data are released. A 0.4 per cent lift is tipped in May after a winter ‘soft patch’ in the March quarter.
On Friday China house prices are issued for May. Prices in Tier 1 cities are decelerating as the government clamps down on property speculation.
Also on Friday US industrial production, consumer confidence and the New York Fed purchasing managers’ index are issued.
Reference: Switzer
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