Rate hike postponed: What’s next?
WEEKLY MARKET COMMENTARY |
After the Federal Reserve’s decision to postpone the liftoff of its rate hike campaign, investor focus will likely turn to central bank policy statements rather than economic data releases this week. The Fed will send out four speakers, including Chair Janet Yellen who will speak at the University of Massachusetts on Thursday.
Given the emphasis the Fed has placed on the global slowdown linked to the economic deceleration in China, forward-looking investors will be looking to policy speeches for clues about the direction of the global economy.
Meanwhile, European Central Bank President Mario Draghi will speak before the European Parliament’s Committee on Economic and Monetary Affairs on Wednesday, and Chinese President Xi Jinping will make his first state visit to the U.S. this week.
The U.S. economic calendar is somewhat light this week, with the most important releases being fresh data on the housing sector, durable goods orders, the final estimate of second-quarter gross domestic product and the final estimate of consumer sentiment for September.