Monday's Market Minute: A Risk-off Tone To Begin The Week

There’s some weakness across global indices to begin the week as investors and traders express concerns related to stubbornly high inflation. The selling comes after Friday's Consumer Price Index (CPI) showed inflation remains at new 40-year highs. Adding to the inflation concerns, China’s Covid numbers are on the rise and sparking speculation we could see further lockdowns in Hong Kong and other areas. 

This all comes ahead of busy week with lots to focus on in terms of potential market movers. Keep an eye on the Producer Price Index (PPI) data due out Tuesday for another look at inflation from the producer side. We also have the FOMC meeting beginning tomorrow with the announcement on Wednesday.

Expectations are widely for a 50-basis point rate hike but after Friday's number there's speculation about 75 being a possibility for the upcoming July meeting. The U.S. dollar at new 24-year highs against the Japanese yen is a reflection of the Bank of Japan’s extremely accommodative stance relative to the FOMC and the disparity between the two.

Additionally, Retail Sales, some housing figures, manufacturing data, MBA mortgage apps, and crude oil inventories all should be watched as they’ll provide further insight into housing trends and the health and wellbeing of the consumer in a higher rate environment. We also have earnings from a few names reporting quarterly results to keep an eye on as the season continues to wind down, including Oracle (ORCL), Kroger (KR), Adobe (ADBE), and Jabil (JBL).

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