Market Overview

Monday's Market Minute: Fundamentals Move Markets

Monday's Market Minute: Fundamentals Move Markets

The focus this week will shift from inflation and central banks to economic data. That’s not to say there won’t be a fair amount of attention directed to comments from Fed Chair Jerome Powell, who will be testifying on the Hill, and other Fed speakers this week (Evans, Williams, Mester, Kaplan, Bullard). With all their transparency, we know their targets, but not much about new methods they plan to use to achieve them.

Since inflation is not a concern at this point, on the front burner we have housing data. After the mixed data last week investors will be looking for clarity to determine if it still remains hot and if existing pandemic trends remain present.

Today, keep an eye on the Chicago Fed National Activity Index; on Tuesday watch Existing Home Sales and the Richmond Fed Manufacturing Index; on Wednesday the FHFA House Price Index will be closely watched for price trends. Thursday, keep an eye on the PMI Composite flash and the Crude inventories. Friday, it’s all about Durable Goods orders – the bigger ticket items. Are they still in demand? Are consumers still spending? Investors will be looking for answers.

The surprise for markets could come from data – the recent bid in global indices will depend on stronger-than-expected economic data to provide the lift, at least until lawmakers provide more stimulus. If housing data starts to weaken, the low rates supporting it discussion will come into question, and so will the recovery. Hence another reason to remain dialed in on the data – fundamentals move markets!

Photo by Chris Li on Unsplash


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