Central Bank page 3

Key events:   USA - Building Permits USA - New Home Sales (Jun) USA - Crude Oil Inventories USA - FOMC Statement             USA - Fed Interest Rate Decision USA - FOMC Press Conference  European markets have had a cautiously optimistic start to the week, with hopes of additional stimulus measures from Chinese authorities following recent poor economic data. As a result, the FTSE 100 experienced a significant boost, reaching a two-month high yesterday.

Key events: USA - Building Permits (May) USA - FOMC Member Bullard Speaks USA - Housing Starts (MoM) (May) USA - FOMC Member Williams Speaks Eurozone - ECB McCaul Speaks Eurozone - ECB's De Guindos Speaks On Monday evening, stock futures slightly declined after a public holiday, as investors anticipated significant speeches from Federal Reserve (Fed) officials and members of the Federal Open Market Committee (FOMC) throughout the week.

Key events:        

Key events:        

Key events:       Australia – Retail Sales (MoM) (Dec)    Canada – GDP (MoM) (Nov) USA – CB Consumer Confidence (Jan)   New Zealand – Employment Change (QoQ) (Q4)   Central banks will be in focus this week with meetings of the U.S. Federal Reserve (Fed), European Central Bank (ECB), and Bank of England (BoE), each expected to keep raising rates.

Fighting global inflation, now at its highest point in decades, has become a number one priority for major central banks around the world. Monetary policy measures that include raising rates are not yet having the desired effect – but it will take time. Nevertheless, there are serious concerns that even such all-powerful institutions as the U.S. Federal Reserve are "running out of ammunition," and there are fewer and fewer opportunities to influence the situation. The problem is that to support monetary policy the Fed needs to liquidate a giant overhang of U.S.

Key events: Eurozone - EU Leaders Summit USA - Initial Jobless Claims USA - Philadelphia Fed Manufacturing Index (Oct) USA - Existing Home Sales (Sep)     A Fed rate hike to levels above 4% will have a negative impact on the construction sector, real estate prices, and ultimately aggregate demand. U.S. companies will stop hiring and layoffs to cope with revenue pressures from both the strong dollar and falling demand in Europe as a result of the energy crisis, which will lead to higher unemployment in the U.S.