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Summertime

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Fed President Lacker likes June. Not just for the pleasant weather, but as a time to raise US interest rates. That Mr Lacker is hawkish is not a surprise, but his persistence in favouring early rate increases comes after several other hawkish comments from other Fed members.
  • The Bank of Japan is clearly not in a mood to tighten policy, with the minutes of the latest meeting suggesting that consumption weakness was a concern and that it may result in the 2% inflation target being missed.
  • German and French consumer confidence data are due. These are not normally a huge focus, but with domestic demand playing a stronger role, in Germany at least, during the first quarter such figures may attract more attention than usual.
  • The UK has the Queen's Speech, setting out the government's legislative program. The referendum on EU membership is probably the most important focus for investors. The opposition support the principle of a vote, so the important issues for markets lie in the details (who votes, what the question will be, and so forth).