Week ahead: Market melt up likely to continue
WEEKLY MARKET COMMENTARY |
Following another strong U.S. jobs report, equity markets will likely continue to melt up this week on the back of solid economic fundamentals, modest improvement in Q2 2017 equity performance and resilient business optimism. Investors will observe a light later summer menu with respect to economic data, policy speak and treasury issuance. Fresh data on the U.S. labor market, inflation, consumer credit and sentiment will be featured during the week.
The Federal Reserve (Fed) will send four speakers to address the public this week with the Thursday, Aug. 10 speech on wage inequality by New York Fed President Dudley likely to be the most watched. The U.S. Treasury will issue $24 billion in three-year notes on Tuesday, Aug. 8 $23 billion in 10-year notes on Wednesday, Aug. 9 and $15 billion in 30-year bonds also on Wednesday. Internationally, the major event will be the United Kingdom’s industrial production report on Tuesday, Aug. 8 and the Reserve Bank of New Zealand’s monetary policy announcement on Thursday, Aug. 10.