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Three Events to Watch: Global Week Ahead

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This summertime Global Week Ahead is light on events, generally speaking. I noted three moments of genuine interest that could reshape the global tone, albeit modestly.

These merit close watching by traders. Otherwise, it is getting a bit laconic out there.

Dow Jones Newswires pulled together this executive summary for us…

On Tuesday, Fed Chair Janet Yellen speaks in London at the British Academy on global economic issues, in a moderated question-and-answer session with the audience.

As the Fed considers the timing of another interest-rate increase and the start of its plan to wind down its asset holdings, economists expect Ms. Yellen to stress the Fed will base its decisions on incoming economic data.

On Wednesday or Thursday, Brazil's Senate is likely to hold a final vote on a bill that would loosen the country's mazelike labor law, which has been a deterrent for investment. The bill has been under debate for months, and markets rallied as it advanced through the lower house earlier this year.

But corruption allegations against the proposal's main supporter, President Michel Temer, who denies wrongdoing, have fanned opposition, making its approval more complicated.

On Friday, inflation figures from around the eurozone will be in focus. For the eurozone, the annual rate of inflation is expected to drop to +1.2% y/y, from +1.4% y/y in May.

That would be the smallest rise in 2017, and likely reinforce the European Central Bank's reluctance to dial down its stimulus measures, despite signs of a continuing pickup in economic growth.

Three Top Zacks #1 Rank (STRONG BUY) Stocks—

Intuit (INTU): This is a $36 billion market cap stock with a Zacks VGM score of C. It is in the computer software industry.

Intuit's mission is to revolutionize how people manage their financial activities. The company's objective is to greatly expand the world of electronic finance.

Electronic finance encompasses three types of products and services:
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Veolia Environment SA (VEOEY): This is a $11.9 billion market cap stock with a long-term Zacks VCM score of A.

Veolia Environment is the only global company to offer the entire range of environmental services in the water, waste management, energy and transportation sectors.

Veolia has been creating global and integrated solutions for public and private sector clients over the world. The quality of its research, the expertise and synergies developed between its teams, its mastery of the public-private partnership model and our commitment to sustainable development have made us a benchmark player in major environmental matters.

Jabil Circuit (JBL - Free Report) : This is a $5.4 billion market cap stock in the Electronics Manufacturing Services space. The long-term Zacks VGM score is an A.

Jabil Circuit, Inc. is a worldwide independent provider of electronic manufacturing services.

It designs and manufactures electronic circuit board assemblies and systems for major original equipment manufacturers in the communications, computer peripherals, personal computer, automotive and consumer products industries.

Key Global Macro Events—

We have 4 Fed speakers on Tuesday. Yellen speaks in London.

Inflation figures from the Eurozone late in the week bear watching.

On Monday, the German IFO indexes came out. Business climate went to 115.1 from 115.0. Current conditions went to 124.1 from 123.5, and expectations went to 106.8 from 107.0.  Nearly all of this is good news.

U.S. durable goods orders went down -1.1% this month, but ex transport, they were up +0.10%.

On Tuesday, the Fed’s Williams speaks in Sydney, Australia and the Fed’s Kashkari speaks in Michigan.

The Fed’s Yellen and Harker speak in London, U.K.

The Case-Shiller Home Price Index (HPI) should be out and the prior reading was +5.89% y/y.

On Wednesday, U.S. pending home sales come out. The prior reading was down -1.3% m/m.

On Thursday, the Eurozone’s Business Climate (prior 0.90), Consumer Sentiment(prior 1.3), and Economic Sentiment (prior 109.2) and Industrial Sentiment (prior 2.8) indexes come out.

The final estimate for U.S. GDP growth in Q1 comes out. Look for +1.1%.

U.S. initial claims should be low again at 241K.

On Friday, the unemployment rate in Germany comes out. The prior reading was 5.7%.

The flash HICP inflation indicator for the Eurozone comes out. The prior was 1.4% y/y.

The national unemployment rate in Brazil is headed to 13.8% form 13.6%.

The Chicago PMI comes out. The prior was a strong 59.4.


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