I think globally to start each trading week. Do you? Follow me on Twitter @johnblank100.
To kick-start a bullish leg in Global Week Ahead trading, U.S. futures suggest the S&P 500 gains 8.5 points to 2,137. If that price holds, or builds up further into the close of Monday’s trading, the S&P 500 index finishes at a new record level.
Bolstering the week’s S&P 500’s bullish trading tone from abroad -- long-term government bond yields hover at record lows, gratis the European Central Bank. The benchmark risk-free U.S. 10-yr Treasury trades under this induced stress at 1.40%. There’s reduced worry over the U.K.’s Brexit vote too. A looming 25 bps rate cut from the U.K.’s Bank of England later this week helps notably.
How did this latest bullish stock sentiment come about?
Last Friday’s U.S. nonfarm +287K jobs data for June suggested this -- the U.S economy is expanding at a ‘goldilocks’ pace. Modest, steady +2.4% annualized GDP growth shows up on GDPNow as of July 6th. This allows the U.S. Fed to safely keep its short-term rates low for longer.
Track the global bullish share buying yourself–
- Japanese stocks surged +4.0% to lead upbeat Asia-Pacific trading.
- The pan-European Stoxx 600 index traded up +1.2%.
- London’s FTSE 100 added +0.9%. Miners and recently hard-hit builders advanced.
Here are three Zacks #1 Rank (Strong Buy) global stocks to look into—
(1) Compass Group PLC COMPGY">COMPGY). This is a $31 billion market cap United Kingdom retail-restaurant group stock. It has a Zacks VGM score of A.
Compass Group PLC provides food and support services to its customers globally through its subsidiaries. The Company serves customers in offices and factories; schools and universities; hospitals and senior living communities; major sports and cultural venues; and remote mining camps and offshore platforms. Compass Group PLC is headquartered in Chertsey, United Kingdom.
(2) KAO Corp ADR . This is a $30 billion market cap Japanese consumer staples products stock. It has a Zacks VGM score of B.
KAO Corp ADR, based in Japan, is a leading global company in consumer products for personal and home care.
(3) Fujifilm Holdings (FUJIY - Free Report) . This is a $17 billion market cap Japanese photo equipment stock. It has a Zacks VGM score of A.
FUJIFILM Holdings Corp. is engaged in development, production, sales and service of imaging, information and document solutions. Its Imaging Solutions segment offers color films, digital cameras, photofinishing equipment, color paper, chemicals and services for photofinishing.
Here are the key global/macro data this week:
Notes: There are 2 key oil market fundamental reports coming out, one from OPEC and one from the IEA. We have lots of Fed speeches this week. Brazil may actually print a positive retail sales number, in advance of the August Olympic Games in Rio. Friday’s China GDP growth reading is one to watch.
On Monday, the BoF business sentiment index should be flat at 97.
Ireland’s GDP growth may test the prior +9.2% y/y level, as the q/q number in Q1 was +2.7%.
The EU’s Finance Ministers meet in Brussels.
The Fed’s Mester speaks in Sydney, Australia, and the Fed’s George speaks in Lake Ozark, Missouri.
The U.K.’s BRC retail sales monitor comes out. The prior reading was +0.5%.
Mexico’s nominal wages look to get to +4.2% y/y from the +3.9% y/y prior rate.
On Tuesday, Australia’s NAB business conditions and business confidence comes out. The priors are 10 and 3 respectively.
Sweden’s CPI could get to +1.1% y/y from +0.6% y/y.
The U.K. BoE Financial Policy Committee minutes are released.
Brazil’s broad retail sales look to be -6.0% y/y, which is better than the prior -6.7%. A +0.6% m/m bump is expected.
German CPI looks flat at +0.3% y/y.
Mexico’s industrial production (NSA) should be +2.5% y/y, better than the prior +1.9% y/y.
Fed’s Tarullo speaks in Washington and the Fed’s Bullard speaks in St. Louis. The Fed’s Kashkari speaks in Michigan.
OPEC releases its monthly oil market report.
On Wednesday, Japan’s preliminary industrial production at -0.1% y/y will be tested.
France’s key HICP inflation could be +0.2% y/y while Spain’s could be +0.4% y/y.
The Eurozone’s industrial production could be +1.4% y/y from +2.0% y/y.
The Fed’s Harker speaks in Philadelphia.
The Bank of Canada (BoC) announces its interest rate.
The Fed releases its Beige Book.
The IEA releases its oil market report.
On Thursday, Australia’s unemployment rate could be 5.8% from 5.7%.
The U.K. Bank Of England (BoE) monetary policy committee meeting hits the tape. It’s rate decision looks to be a cut to 0.25 from 0.50 on the base rate.
U.S. initial claims look to be 254K.
The Fed’s Lockhart speaks in Idaho and the Fed’s George speaks in Oklahoma City.
The BoK announces its interest rate decision.
On Friday, China’s real GDP may be +6.6% y/y from +6.7% y/y prior. China’s industrial production should be +5.9% from +6.0% and retail sales +9.9% from +10%.
The Eurozone’s core HICP inflation rate could be +0.9% y/y.
The U.S core (ex food & energy) could be +0.2% y/y.
U.S. retail sales (ex auto) could be up +0.4% y/y.
U.S. capacity utilization could be 75% from 74.9%.
University of Michigan sentiment could be holding firm at 93.5.