Asian shares are mixed in trading on Monday and the Japanese Nikkei 225 is up 2.39 percent mostly due to rising expectations of further monetary easing by the Bank of Japan while the British Sterling has dropped 1.56 percent after tumbling 8 percent on Friday following the Brexit vote.
European stock indexes are moving lower in early trading and U.S. stock futures are poised to open slightly lower on Monday.
In Britain 3 million Brits signed a petition over the week-end in support of Britain having another referendum vote about staying in or out of the European Union.
David Miliband, former British foreign secretary said on NBC’s Meet the Press aired yesterday that the economics of the Brexit both short term and medium term are very dangerous and “investment in the U.K. is significantly driven by our access to the European single market.”
Exiting the EU means that the U.K. will lose out on having direct access to the European single market free of trade barriers.
Miliband admitted there’s also a major danger for the integrity of the U.K. after the Scottish devolved parliament signaled that they want to have a further referendum on Scotland’s place in the U.K.
He also expressed concern because Vladimir Putin is cheering.
The Week Ahead
EU leaders will meet in Brussels on Tuesday for a 2 day summit and will address the outcome of the Brexit vote.
U.S. Secretary of State John Kerry is traveling to Brussels and London for discussion about the British vote.
On Wednesday U.S. Federal Reserve Chair Janet Yellen will be attending a policy panel during an ECB Forum on Central Banking in Portugal and make some statements. ECB President Mario Draghi will be present at the forum.
Bank of England Governor Mark Carney is now reportedly attending the forum although some initial sources indicated he would not likely attend.
U.S. Economic Calendar
On Monday International Trade in Goods is reported for May.
Investors will be watching the third estimate of U.S. GDP 1Q 2016 released on Tuesday from the Bureau of Economic Analysis for final confirmation about the health of the U.S. economy during the first 3 months of 2016. Economists from briefing.com have a consensus estimate of 1.0 percent U.S. GDP growth in the third estimate, up slightly from 0.8 percent in the 2nd reading.
Second quarter GDP data isn’t released until July 29th.
On Tuesday Consumer Confidence for June and the Case Shiller 20 city index for April will be reported.
On Wednesday the Fed’s preferred inflation gauge, Personal Consumer Expenditures (PCE), will be viewed for May. Pending home sales for May will also be reported on Wednesday.
On Thursday there is Chicago PMI for June and weekly continuing and initial jobless claims.
On Friday the ISM Index for June will be reported in addition to construction spending for May and Auto/Truck Sales for June.
Written By: Johnathan Schweitzer