3 Overnight Headlines and 3 Items for the Day

Market strategists at Nomura, including Pooja Kumra, highlighted the following three headlines overnight and said investors should keep they eye on the following three items for the day ahead:

Headlines:

• UK: The BoE Minutes showed that the decision to keep policy unchanged was unanimous as expected.
• China: The MNI business sentiment index continued to rise to 55.0 in June from 53.7 in May. Separately, 15 out of 70 cities surveyed experienced m-o-m property price increases in May, down from 44 in April. The number of cities experiencing declines rose to 35 from 8 in April.
• Japan: The trade deficit widened to JPY909bn in May from JPY811.7bn in April (Consensus: JPY1189.3bn deficit). Separately, household financial assets in 1Q 2014 were JPY1630trn, down from JPY1644trn in Q4 2013.

The Day Ahead:

• BOE speakers: Martin Weale will speak in Belfast (7:15 EDT), while Andy Haldane will speak at the Ambassador‟s Fair in Scarborough (13:30 EDT).
• US response to Iraq: President Obama hosts congressional leaders at the White House to discuss the US response to developments in Iraq, while Secretary of State Kerry holds closed meetings with both the Senate Foreign Relations Committee (8:00 EDT) and Saudi Arabia‟s US Ambassador Adel Al-Jubeir (9:00 EDT).
• FOMC meeting: At the conclusion of the 17-18 June Federal Open Market Committee (FOMC) meeting, we expect the FOMC to announce another $10bn reduction in its asset purchase programme. We will look to see if there is any mention of discussions on the exit strategy in the statement or in Chair Yellen‟s press conference. We will also look out for any mention of the pace of adjustment when the Committee begins to raise rates. The Summary of Economic Projections (SEP) will also be released. Notably, based on the weak Q1 GDP numbers, we expect to see a downward revision to the FOMC‟s GDP forecast for 2014. Read more: June FOMC Preview, Policy Watch, 13 June 2014.

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