The recent record highs for US stock markets could be tested in the days
and weeks ahead as earnings season gets under way and investors get the
latest read on when the US Federal Reserve might start to raise
interest rates back up to normal levels.
Further, investors were thrown a curve ball by International Monetary Fund managing director Christine Lagarde on Sunday, July 5, when she hinted that the IMF may slightly lower its global growth forecasts some time this month due to subdued investment levels in the global economy.
Lagarde has already said that continued growth in the US economy depends to some degree on the Federal Reserve continuing to reduce or “taper” its unorthodox bond-buying stimulus measures in an “orderly manner” so that shock waves in the wider, global economy are avoided.
“Despite the many responses to the crisis … recovery is modest, laborious, fragile, and measures to boost demand, despite the goodwill of central banks, will find their limits,” Lagarde told a conference in the south of France on Sunday.
Well, this coming Wednesday, investors may get some hints as to the Fed’s future moves when the US central bank releases the minutes of the June 17-18 meeting of its Federal Open Market Committee. The Fed is considering when it should eventually raise its main interest rate for the first time since 2006.
Earnings season does not get into full swing until July 14, but Alcoa reports earnings on Tuesday, July 8, and Wells Fargo reports on Friday, July 11.
The big corporate event of the week starts on Wednesday at the Sun Valley mountain resort in Idaho where chief executives and leaders of major companies in the media, technology and finance sectors gather for the annual Allen & Co conference.
The conference, which runs through the weekend, is often an event where big deals are done or at least planned among media and technology moguls.
And this year, there is much speculation about Rupert Murdoch’s reported interest in Time Warner, despite its size and roughly $63 billion stock market value.
Watch this space !
Further, investors were thrown a curve ball by International Monetary Fund managing director Christine Lagarde on Sunday, July 5, when she hinted that the IMF may slightly lower its global growth forecasts some time this month due to subdued investment levels in the global economy.
Lagarde has already said that continued growth in the US economy depends to some degree on the Federal Reserve continuing to reduce or “taper” its unorthodox bond-buying stimulus measures in an “orderly manner” so that shock waves in the wider, global economy are avoided.
“Despite the many responses to the crisis … recovery is modest, laborious, fragile, and measures to boost demand, despite the goodwill of central banks, will find their limits,” Lagarde told a conference in the south of France on Sunday.
Well, this coming Wednesday, investors may get some hints as to the Fed’s future moves when the US central bank releases the minutes of the June 17-18 meeting of its Federal Open Market Committee. The Fed is considering when it should eventually raise its main interest rate for the first time since 2006.
Earnings season does not get into full swing until July 14, but Alcoa reports earnings on Tuesday, July 8, and Wells Fargo reports on Friday, July 11.
The big corporate event of the week starts on Wednesday at the Sun Valley mountain resort in Idaho where chief executives and leaders of major companies in the media, technology and finance sectors gather for the annual Allen & Co conference.
The conference, which runs through the weekend, is often an event where big deals are done or at least planned among media and technology moguls.
And this year, there is much speculation about Rupert Murdoch’s reported interest in Time Warner, despite its size and roughly $63 billion stock market value.
Watch this space !
