Wednesday August 31, 2016

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

The futures markets are mixed as some international news and the looming Fed decision await traders this morning.  On the international side, the euro-area posted inflation for August at 0.2% (stable) which came in just below the estimate of 0.3%.  Further on September 8, the European Central Bank (ECB) is expected to make their next policy decision.  The ECB commented that the stimulus is justified given the current financial stability. 

Spain is expected to vote on their government and will vote in parliament today.  It is expected that current custodial Prime Minister Mariano Rajoy will gather the necessary votes to establish a new government.  Lastly, Brazil is expected to make their final vote on the impeachment of former President Dilma Rousseff; it is expected that they will vote for her dismissal. 

Stateside, investors are awaiting the ADP employment report today ahead of the weekly jobless claims tomorrow, and the unemployment rate data on Friday.  These data points will either strengthen or weaken the ability of the Fed to increase interest rates in September. 

In other economic news the July pending home sales data is expected to be announced at 10 am today.  The street is expecting a nice boost to +0.9%, up from last month’s reading of +0.2%. 

Brian Hamilton