Central Banks are in focus this week, with the Federal Reserve expected to release its decision on interest rates later this week. The Bank of England and Bank of Japan meetings later this week are also likely to be closely watched.
In the UK, Theresa May will address the 1922 Committee of rank-and-file Tory lawmakers on Monday, in a meeting that will test her chances of staying in office.
All eyes on the FED
Low layoffs, rising home construction and healthy consumer spending. There are some of the hallmarks of a good economy. All these trends are likely to be in evidence this week as Federal Reserve VIPs gather once again to decide whether to raise interest rates. A batch of reports for May, including retail sales, are likely to show that the US economy is on an upswing.
This is why many on Wall Street view it as a foregone conclusion that the Fed will nudge the cost of borrowing a bit higher during its meeting on Wednesday.
After a slow start to 2017, the economy has forged ahead. Millions of people have found jobs, putting more cash into their pockets, boosting household wealth to the highest level in a decade and driving the unemployment rate down to a healthy level.
Tech under pressure
Tech stocks worldwide were under pressure on Monday, after some major tech names in the US fell almost 3% during the last trading session. Despite touching an all-time high, the Nasdaq booked its sharpest peak-to-trough turnaround since February. The sudden pivot lower was driven by steep losses in a swath of some of the most popular names in technology.
Shares of Apple lost 1% and Advanced Micro Devices was down 4.81%. Micron Technology shed 5.7%, but the biggest decliner was NVIDIA Corp, which shank 6.5% in Friday trade.
Markets on Monday
Asian shares closed in negative territory on Monday, ahead of the two-day Federal Reserve meeting that begins on Wednesday and as tech stocks took a tumble.
European markets followed suit, opening in the red as investors took a cautious approach as they came to terms with a hung parliament in the UK, and as technology stocks moved south.
Disclaimer:
This article was issued by Rebecca Naudi, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.