Watch These Three Items for the Day Ahead

Market strategists at Nomura, including Pooja Kumra, note that investors should keep they eye on these three events for the day ahead:

Euro area Consumer confidence index, May – preliminary estimate (Consensus: -8.3, Previous: -8.6).

German Chancellor Merkel speaks at EU Parliamentary election rally in Hof and Tauberbischofsheim.

FOMC minutes: The Federal Open Market Committee (FOMC) again reduced the pace of its asset purchases by $10bn at its April meeting. There were no major surprises in the FOMC statement as the economy has evolved largely in line with its forecast. However, the Board of Governors of the Federal Reserve System held a meeting before the start of the FOMC meeting on 29 April to discuss “medium-term monetary policy issues.” No additional details of this meeting were revealed. Based on previous discussions of this nature, we expect the minutes to reveal some detail of this discussion. We believe that the most likely topic discussed was the evolution of short-erm funding markets over the last five years and the developments in the Fed‟s operating procedures that will be necessary before the FOMC actually seeks to raise short-term interest rates.

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