US
Wall Street’s attention will be focused on the debt ceiling drama, Fed talk, retail earnings and bank stress. This week is packed with economic data. Of particular interest are the Empire manufacturing survey and a retail sales report, which should indicate a rise in consumer spending. Also, the weekly jobless claim will be released, as well as existing home sales.
Debt ceiling discussions have been postponed and are expected resume this coming week. Default risk is on the rise and would be catastrophic to the economy.
The Fed may be more inclined to hold rates for a longer period of time than expected, given the disinflationary trends and the emerging weakness in the labor markets. The Fed will be making nine appearances this week. Highlights include Bostic’s Monday and Goolsbee’s Tuesday. Fed Chair Powell also participates in a panel discussion with former Fed chair Bernanke.
Eurozone
There are a lot of economic releases over the next week but I’m not sure any really fall into the tier one category, despite having some potential to do so. HICP releases are huge, but the revisions tend to be marginal. It’s unlikely to be a game changer but never say never. Flash GDP data is also of…
