All eyes on The Fed

  • European indices set for higher opening
  • Fed rate decision at 7:00 pm BST
  • ECB calls emergency meeting

Stock markets in Europe are set for a higher opening of the cash trading session today. Moods improved following the release of better-than-expected activity data from China overnight. EUR is trading higher as ECB called an emergency governing council meeting to discuss the current bond market situation.

While the ECB will be on watch, today is all about the US central bank. Fed will announce monetary policy decisions at 7:00 pm BST, followed by the press conference of Chair Powell at 7:30 pm BST. Rate hike is certain but it is uncertain whether it will be 50 or 75 basis points. A new set of forecasts as well as dot-chart will show where central bankers see the US economy in the near-term. Apart from Fed, US retail sales report at 1:30 pm BST and DOE oil inventories data at 3:30 pm BST may trigger some volatility on USD and oil, respectively.

9:00 am BST – Poland, CPI inflation for May (final). First release 13.9% YoY

10:00 am BST – Euro area, industrial production for April. Expected: 0.5% MoM. Previous: -1.8% MoM

1:30 pm BST – US, retail sales for May.

  • Headline. Expected: 0.2% MoM. Previous: 0.9% MoM
  • Ex-autos. Expected: 0.8% MoM. Previous: 0.6% MoM

3:30 pm BST – DOE report on oil inventories.

  • Oil inventories. Expected: -1.2 mb (API: +0.74 mb)
  • Gasoline inventories. Expected: +0.8 mb (API: -2.16 mb)
  • Distillate inventories. Expected:0.0 mb (API: +0.23 mb)

7:00 pm BST – FOMC rate decision

Central bankers’ speeches

  • 10:15 am BST – ECB Nagel
  • 5:20 pm BST – ECB President Lagarde
  • 7:30 pm BST – Fed Chair Powell (post-decision press conference)
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