US Economy and Credit Markets Ended June 30, 2017
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Yields rose markedly across the board this week after investors digested comments from European Central Bank President Mario Draghi that the ECB will soon follow the Federal Reserve's less accommodative monetary policy. These hawkish comments were echoed by central bankers in Canada and the UK sending global bond markets for a tailspin. Lackluster inflation data in recent months continues to weigh on investors, however, Mario Draghi reiterated sentiment akin to Fed Chairwoman Janet Yellen's assurance that the weaker inflationary pressure is transient. On Friday, the Fed's preferred measure of inflation, the personal-consumption expenditures index, recorded the third monthly decline. Minutes from the June 14 FOMC Meeting will be released Wednesday which investors will scour for indications of the Fed's conviction to lessen accommodation. Major economic reports (related consensus forecasts; prior data) for the upcoming holiday-shortened week include: Monday: June Markit US Manufacturing PMI (52.1, 52.1), June ISM Manufacturing (55.0, 54.9), June ISM Prices Paid (58.5, 60.5), May Construction Spending MoM (0.2%, -1.4%); Wednesday: May Factory Orders (-0.5%, -0.2%), May Durable Goods Orders (--, -1.1%); Thursday: June 30 MBA Mortgage Applications (--, -6.2%), July 1 Initial Jobless Claims (244k, 244k), June ADP Employment Change (180k, 253k), May Trade Balance (-$46.2b, -$47.6b), June ISM Non-Manufacturing (56.5, 56.9); Friday: June Change in Nonfarm Payrolls (175k, 138k), June Unemployment Rate (4.3%, 4.3%).
Posted on Monday, July 3, 2017 @ 8:02 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.