With the market at new highs and the end of the month nigh, money managers will have itchy trigger fingers. And the market will give them lots of things to shoot at including:
Monday USA Pending home sales up slightly HIT
Tuesday Case-Shiller Home Price Index. A sharp rise in home prices might stoke further Fed fears of inflation since they are meeting the day the indicator comes out. Consumer confidence survey comes out same day and its already at a high level. Further rise will do much to confirm tapering is on for September.
Wednesday Euro-Zone Consumer Price Index The ever vigilant bond vigilantes in Europe will be scouring the line items for further proof that austerity is needed. The highlight of the week, will be the Federal Reserve FOMC Meetings in which they will have more gibberish about the economy is showing signs of improvement and that the tapering is data dependent. It’s also the last day of the month and market players will be freaked out trying to lock in one of the biggest months all year.
Thursday– no sooner than the market begins to breath again after the Fed minutes, the all powerful China Manufacturing PMI slams us in the early hours of the morning. It’s expected to contract. Slower growth in the 2nd largest economy coupled with tightening via tapering in the U.S is not a cocktail the bulls wants to drink. Initial jobless claims and continuing claims now play a big role, is tightening coming sooner or later? Then later in the day we have USA ISM manufacturing. Is the tepid manufacturing engine overcoming the global slowdown?
Friday All eyes will be on the crtical USA Unemployment Rate