Highlights
For this week, in a two-day meeting ending Wednesday, the Federal Reserve is widely expected to leave the target range for the federal funds rate in a range of 5.25 to 5.50 percent, which was last raised in July 2023. The Fed is keeping restrictive monetary conditions to bring inflation back to its 2 percent target from above 3 percent (3.4 percent forecast for the May CPI data due Wednesday) amid still tight labor conditions, in contrast to last week's moves by the Bank of Canada and the European Central Bank to conduct their first rate cuts this cycle.
The Bank of Japan is also expected on Friday to leave the overnight interest rate target in a range of zero to 0.1 percent for a second straight meeting after conducting its first rate hike in 17 years and ending the seven-year-old yield curve control framework in March. The board is expected to discuss what to do with the bank's large-scale asset purchases in the process of normalizing monetary policy.
There are not many indicators on Monday.
In Switzerland, the SECO consumer sentiment index again seen little changed at minus 37 for May versus minus 38 in April.
Italian industrial production is forecast to post a slight 0.2 percent rise on the month in April after marking a surprisingly weak 0.5 percent decline (consensus was a 0.3 percent gain) in March and being flat in February. From a year earlier, output is seen down 2.1 percent after falling 3.5 percent in March.
In Asia, the markets in China, Hong Kong and Taiwan are closed for the Dragon Boat Festival holidays on Monday. Australia's markets are closed for the King's Birthday holiday.
The Bank of Japan is also expected on Friday to leave the overnight interest rate target in a range of zero to 0.1 percent for a second straight meeting after conducting its first rate hike in 17 years and ending the seven-year-old yield curve control framework in March. The board is expected to discuss what to do with the bank's large-scale asset purchases in the process of normalizing monetary policy.
There are not many indicators on Monday.
In Switzerland, the SECO consumer sentiment index again seen little changed at minus 37 for May versus minus 38 in April.
Italian industrial production is forecast to post a slight 0.2 percent rise on the month in April after marking a surprisingly weak 0.5 percent decline (consensus was a 0.3 percent gain) in March and being flat in February. From a year earlier, output is seen down 2.1 percent after falling 3.5 percent in March.
In Asia, the markets in China, Hong Kong and Taiwan are closed for the Dragon Boat Festival holidays on Monday. Australia's markets are closed for the King's Birthday holiday.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
