Monday, August 29, 2016

(This is Brian Hamilton filling in for Mark Vickery who is on vacation this week.)

The futures markets pointed to a lower opening as investors are still digesting the possibility of a Fed rate hike sooner than expected.  This tone was felt across the globe as equites struggled in most major countries with the exception of Japan.  The Topix Index rose +2.3% because of comments from the Bank of Japan’s Governor, Haruhiko Kurodato, who stated that he would boost their monetary stimulus if needed.   

There are several economic reports coming in this morning; July Personal Income, July Consumer Spending, and July Core Inflation.  The street is expecting Person Income to improve by +0.4%, Consumer Spending to increase by +0.3%, and Core Inflation to grow by +0.1%.  

Later in the week, we will see several key economic reports; weekly jobless claims, productivity, ISM manufacturing, and the U.S. unemployment report.   These reports will be key indicators of a healthy, and stable economy.  Friday’s unemployment data will be the final and most important report before the Fed’s September policy meeting.  These combined reports will be the major drivers in the Fed’s decision whether or not to raise rates in their September meeting. 

Lastly, oil prices started the day down as concerns regarding Iran’s production plans have increased ahead of this month’s OPEC meeting.  The previously expected production cap is becoming less and less likely with each passing day. 

Brian Hamilton