Post by Dave on Mar 21, 2021 20:14:00 GMT -8
Good morning, it’s Monday and the start of another new week.
What to Expect in the Markets This Week
What to Expect in the Markets This Week
Events This Week
Sunday, March 21:
People's Bank of China (PBoC) Loan Prime Rate Announcement.
Monday, March 22:
Market Holiday in South Africa for Human Rights Day.
U.S. Existing Home Sales (February).
Tuesday, March 23:
U.K. Unemployment Rate (January).
U.K. Average Earnings Index (January).
U.S. New Home Sales (February).
Wednesday, March 24:
U.K. Consumper Price Index (CPI) (February).
U.K. Producer Price Index (PPI) (February).
U.S. Durable Goods Orders (February).
U.S. Manufacturing Purchasing Managers' Index (PMI) (March).
U.S. Services PMI (March).
U.S. Composite PMI (March).
U.S. Markit Composite PMI (March).
Thursday, March 25:
German GfK German Consumer Climate Index (April).
U.S. Gross Domestic Product (GDP) (Q4).
Jaanese Tokyo Core CPI (March).
Friday, March 26:
U.K. Retail Sales (February).
German Ifo Business Climate Index (March).
U.S. Goods Trade Balance (February).
U.S. Personal Consumption Expenditure (PCE) and Core PCE Price Indexes (February).
U.S. Personal Consumption Expenditures (February).
U.S. Preliminary Michigan Consumer Sentiment and Expectations (March)
Sunday, March 21:
People's Bank of China (PBoC) Loan Prime Rate Announcement.
Monday, March 22:
Market Holiday in South Africa for Human Rights Day.
U.S. Existing Home Sales (February).
Tuesday, March 23:
U.K. Unemployment Rate (January).
U.K. Average Earnings Index (January).
U.S. New Home Sales (February).
Wednesday, March 24:
U.K. Consumper Price Index (CPI) (February).
U.K. Producer Price Index (PPI) (February).
U.S. Durable Goods Orders (February).
U.S. Manufacturing Purchasing Managers' Index (PMI) (March).
U.S. Services PMI (March).
U.S. Composite PMI (March).
U.S. Markit Composite PMI (March).
Thursday, March 25:
German GfK German Consumer Climate Index (April).
U.S. Gross Domestic Product (GDP) (Q4).
Jaanese Tokyo Core CPI (March).
Friday, March 26:
U.K. Retail Sales (February).
German Ifo Business Climate Index (March).
U.S. Goods Trade Balance (February).
U.S. Personal Consumption Expenditure (PCE) and Core PCE Price Indexes (February).
U.S. Personal Consumption Expenditures (February).
U.S. Preliminary Michigan Consumer Sentiment and Expectations (March)
U.S. Home Sales
Data on U.S. existing and new home sales in February are released this upcoming Monday and Tuesday, respectively. The real-estate market has been surging since it home sales plummeted last summer. The surge has been driven by low mortgage rates and the ease of relocation due to the pandemic forcing people to work from home. Existing home sales increased 23.7% year-over-year in January and new home sales increased 19.3%.
Two factors could act to slow this boom. First, housing prices have continued to rise, with median home prices up 14.1% year-over-year in January. The other is that mortgage rates having been rising, both due to increasing demand and newly resurgent Treasury yields.
Consumer Spending (PCE)
Anyone making investments based on the speed of the U.S. recovery should pay attention to February consumer spending data released by the Commerce Department this upcoming Friday. This figure, technically known as personal consumption expenditures (PCE), rose 2.4% in January over the previous month. This came after declines in both December and November. The increase was likely spurred by the stimulus checks sent out the December relief bill. It's unclear if that boost will be large enough to sustain consumer spending through February, while people wait for their checks from the American Rescue Plan, which passed this month.
PCE Price Index
Another key metric announced this upcoming Friday is is the PCE price Index. The PCE price index is a measure of inflation, like the Consumer Price Index (CPI). The two indexes are based on different data sets and somewhat different sets of goods, and so will give somewhat different readings. PCE index is especially important because the Federal Reserve uses core PCE inflation (the PCE index minus food and energy costs) as its main inflation metric, so when you hear that the Fed wants to keep inflation around 2%, that's what it's referring to.
Data on U.S. existing and new home sales in February are released this upcoming Monday and Tuesday, respectively. The real-estate market has been surging since it home sales plummeted last summer. The surge has been driven by low mortgage rates and the ease of relocation due to the pandemic forcing people to work from home. Existing home sales increased 23.7% year-over-year in January and new home sales increased 19.3%.
Two factors could act to slow this boom. First, housing prices have continued to rise, with median home prices up 14.1% year-over-year in January. The other is that mortgage rates having been rising, both due to increasing demand and newly resurgent Treasury yields.
Consumer Spending (PCE)
Anyone making investments based on the speed of the U.S. recovery should pay attention to February consumer spending data released by the Commerce Department this upcoming Friday. This figure, technically known as personal consumption expenditures (PCE), rose 2.4% in January over the previous month. This came after declines in both December and November. The increase was likely spurred by the stimulus checks sent out the December relief bill. It's unclear if that boost will be large enough to sustain consumer spending through February, while people wait for their checks from the American Rescue Plan, which passed this month.
PCE Price Index
Another key metric announced this upcoming Friday is is the PCE price Index. The PCE price index is a measure of inflation, like the Consumer Price Index (CPI). The two indexes are based on different data sets and somewhat different sets of goods, and so will give somewhat different readings. PCE index is especially important because the Federal Reserve uses core PCE inflation (the PCE index minus food and energy costs) as its main inflation metric, so when you hear that the Fed wants to keep inflation around 2%, that's what it's referring to.