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Weekly Market Intro – OPEC meeting on focus

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The markets enter in the new month after a very successful June with main Wall Street indexes having strong performance and accumulating significant gains.

The blue-chip benchmark Dow Jones Industrial Average added more than 7% to its value this month, which is its biggest growth in June since 1938. The year-to-date growth of the benchmark is 13.9%.

The broader S&P 500 jumped by 6.9% for the month, which is the best performance in June since 1955. The broad measure was also up by more than 17% since the beginning of the year, and this is the biggest gain since the first half of 1997.

Meanwhile, the technology index Nasdaq Composite recorded an increase of 7.4%.

In view of the holiday that the markets will have around US Independence Day, the first week of July is expected to be relatively calm, with a focus on OPEC meeting on Monday and Tuesday.

Upcoming economic data

On Monday, July 1, will be published the data on Japan’s industrial sector. Also will be released the PMI data for June in South Korea, Japan, China, Russia, Spain, Italy, France, Germany, the Eurozone, the United Kingdom, and the United States. During the day will be released labor data in Germany and Italy, as well as the Eurozone. The Organization of Petroleum Exporting Countries (OPEC) met at a two-day meeting to discuss its production policy for the second half of the year. The day is off for Canada and Hong Kong.

On Tuesday, July 2, the Reserve Bank of Australia will have a monetary policy meeting with expectations to lower its primary interest rate from 1.25% to 1%. In Germany will be published the data on retail sales in May. The consensus forecast is for a 0.5% growth on a monthly basis, compared to a 2% decline in the previous month. In the UK, the Construction Purchasing Managers Index is expected to report a slight improvement in activity.

On Wednesday, July 3, Australia will release a series of data, including trade balance and building permits. The markets will track the service procurement managers’ indexes in China, Russia, Spain, Italy, France, Germany, the Eurozone, the UK, and the US. For the US there will also be data on the trade balance in May, employment outside the agricultural sector in June, orders for May plants, and up-to-date information on crude oil stocks.

On Thursday, July 4, Australia will publish the retail sales for May with an expected growth of 0.2% month-on-month. Data on retail sales in the Eurozone are expected later with the consensus forecast for acceleration from -0.4% to 0.4% on a monthly basis and from 1.5% to 1.6% on an annual basis. The day is off in the US for Independence Day.

On Friday, July 5, will be released the household consumption expenditure in Japan. Later during the day will be published the data on orders for plants and industrial production in Germany. A series of data on the country’s labor market will come from the United States.

Upcoming corporate earnings

On Monday, July 1, will be published the financial report of the healthcare provider Aethlon Medical and Akers Biosciences. During the day will be released the earnings of retailer Sears Holdings, as well as FTE Networks.

On Tuesday, June 2, the markets will focus on earnings of the lighting and building management solutions provider Acuity Brands. Also during the day will be released the financial statements of Greenbrier Companies, OMNOVA Solutions, and Immune Pharmaceuticals.

On Wednesday, July 3, will be published the earnings report of the NASCAR and IndyCar race tracks owner International Speedway Corp.

On Friday, July 5, the markets will focus on the game developer Alliance Media Holdings, the manager of industrial and commercial facilities Griffin Industrial Realty, as well as the analytics company Helios and Matheson Analytics.