Heap Of New Data, FOMC and Greenspan Testimonial Suggest Volatile Week Ahead

Monday, October 31, 2005

A heap of new economic indicators will probably lead to volatile market developments in the week to come. Major market action could follow on the heels of the FOMC meeting on Tuesday and Fed chairman Alan Greenspan's testimonial to Congress on Thursday.
On Monday the PCE deflator, one of the Fed's dearest figures used to predict future inflation trends, and the NAPM could initiate a correction from Friday's rally which would also be driven by technical factors after the latest surge in share prices.
On Tuesday all eyes will be on the statement following the third-last FOMC meeting chaired by Alan Greenspan. All forecasts predict another 25 basis point hike in the Fed Funds rate which will climb to 4.0%. The short end of the debt market has already priced in this action and market participants will scrutinize the FOMC statement for a variation in the wording regarding growth and the inflation outlook.
Wednesday leaves the opportunity for a short breather with only the EIA petroleum status report on the agenda.
Focus your concentration powers on Thursday. As jobless claims, productivity and factory order figures will be released before Fed chairman Alan Greenspan will testify to Congress about the economic outlook they should not have that much impact on market movements. Greenspan's testimonial will begin at 10 AM NY time and markets will probably trade in narrow ranges until the end of his Q&A session.
Friday will bring the new un/employment report where projections vary wildly between a minus of 25,000 and a plus of 300,000 for nonfarm payrolls.
For all consensus estimates surf to econoday.com.

1 comment

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22 May, 2012 10:33

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