- Fed Day. The Federal Reserve (Fed) wraps up its two-day monetary policy meeting this afternoon, with a post-meeting statement to be released at 2:00 p.m. ET. Remember, there will not be a post-meeting press conference or updated economic forecast (better known as “dot plots“). Although we expect no rate hike today (consistent with the general consensus), we do expect a rate hike at the next meeting in mid-June. Of interest today will be the Fed’s thoughts on inflation, as most inflation data has been ticking higher.
- Global manufacturing data. Eurozone April Manufacturing PMI came in at 56.2 versus expectations of 56.0–the lowest it has been since March 2017. A strong euro, flu season, and weather were all named as potential reasons for the weaker data. Turning to China, the Caixin Manufacturing PMI was 51.1 last month, better than expectations of 50.9. Highlights included uncertainty regarding exports due to trade concerns, while input prices rose for the first time since last September, thanks in part to a three-year high in crude oil.
- Still searching for income? Though it’s gotten a little easier over the past couple months, the interest rate environment remains difficult to navigate with rates still low relative to historical norms. But opportunities are there, and this afternoon’s post on the LPL Research blog, a complement to this week’s Bond Market Perspectives, can help you in your search for income.
Monitoring the Week Ahead
- Markit Mfg. PMI (Apr)
- ISM Mfg. PMI (Apr)
- Nikkei Japan Svcs. PMI (Apr)
- Trade Balance (Mar)
- Markit Svcs. PMI (Apr)
- Durable Goods Orders (Mar)
- Eurozone: CPI & PPI (Mar)
- China: Caixin China Svcs. PMI (Apr)
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