Asian shares are moving higher in trading and crude oil is nudging slightly higher after whipsaw action last week saw crude prices dropping to $26.19 in trading on Wednesday, a low not seen since April 2003, followed by a 23 percent surge to over $32.00 before the close on Friday following speculative comments on Thursday by ECB President Mario Draghi alongside hopes of further easing by the Bank of Japan.
Investors will be paying close attention the outcome of a 2 day Federal Reserve meeting scheduled to conclude this Wednesday followed by a policy statement but no press conference.
Committee members at the Fed will hold a meeting summary of economic projections and Fed Chairwoman Janet Yellen will have a press conference at the end of the March 15-16th meeting.
Most economists are not expecting any new announcement about an interest rate hike during this week’s January FOMC meeting, especially in light of plunging oil prices and signs of some slowing in China’s economy.
In the United States, investors will pay close attention this week to a consumer confidence report on Tuesday for this month in addition to new home sales for December on Wednesday and a 4th quarter 2015 GDP report (adv.) that is due on Friday.
Economic growth is expected to have slowed to 0.9 percent in the 4th quarter of 2015, according to a briefing.com consensus after 2 percent expansion in the previous quarter.
Durable orders for December will come into focus on Thursday along with pending home sales (Dec.) and initial/continuing jobless claims.
Briefing.com consensus expects a -0.5 decline with durable orders in December after a flat 0.0 percent reading in November.
On Friday Chicago PMI and Michigan Sentiment will also be reported.
Corporate earnings season will continue this week with McDonald’s reporting on Monday before the open.
Apple reports on Tuesday after the close.
Facebook will report on Wednesday after the close followed by Microsoft on Thursday.
Monday- no economic reports
Tuesday- Consumer confidence (January), FHFA Housing Index (Nov.), and Case-Shiller 20 city Housing Index (Nov.)
Wednesday- FOMC rate decision, New Home Sales (Dec), Crude Inventories (1/23), MBA Mortgage Index
Thursday- Durable Orders (Dec.), Initial and Continuing Jobless Claims, Pending Home Sales (Dec), Natural Gas Inventories
Friday- GDP (4th Quarter 2015), Employment Cost Index (Q4), Chicago PMI (Jan), Michigan Sentiment (Jan)