America is where the action is this week with the Fed holding a two-day meeting.
The Group of 20 big industrial countries meets in Canada at the end of the week, there’s inflation figures in Japan, a much anticipated budget in the UK that is expected to reveal tax rises and big budget cuts, while in Australia the resource tax debate looks like being the only action.
Financial markets will be looking for another steady week after last week’s rises.
In addition to the statement from the Fed’s rate-setting meeting, investors will take in data on the housing and labor markets, consumer sentiment and the final reading for first-quarter gross domestic product.
The Fed is expected to reiterate its commitment to keeping interest rates "exceptionally low" for an "extended period" at the end of its two-day meeting on Wednesday.
Low inflation and high unemployment means there won’t be a change in the Fed’s settings.
The G20 summit is in Toronto next weekend, June 26-27, and nothing significant is expected to emerge.
Europe’s push for a bank tax will be avoided after it was pushed aside by the G20 finance ministers last month.
But differences between the US and China over the value of the Yuan are likely to be aired, as might differences between the US and Europe over spending cuts.
Further differences have emerged over financial reform (capital needs for banks) and the bank and transaction taxes, plus the ban on naked shorting by Germany.
Kicking off next week’s round of US data will be existing US home sales for May (tomorrow night), while new home sales for the same month are expected on Wednesday.
Market forecasts have existing house sales rising (because of rising sales of foreclosed homes) and new home sales falling (because of very weak demand).
But watch for the ending of the home buyers tax credit: it pushed down new home starts last week and will probably see existing and new home sales down as well.
Weekly initial claims are out on Thursday (with the continuing monthly claims) and durable goods for May are expected to show a fall after rising in April.
Friday sees the third and final reading of first-quarter GDP which is expected to show a gain of 3% steady with the second estimate. June consumer sentiment will also be released.
US Congressional leaders will try and settle their differences over the new financial regulation bill by Thursday so it can be sent to President Obama before July 4.
Still unresolved, disputes over proposals to limit debit card fees and create a financial consumer watchdog with teeth.
Both houses of Congress need to agree also on limiting risky trading by banks and isolating their swaps trading desks, funding government liquidations of troubled financial firms and enhancing shareholder rights, plus cementing the pre-eminent position of the US Fed as the top regulator.
Goldman Sachs is due to provide a response to the SEC’s fraud charges tonight, our time (they were filed on April 16), but seems to be asking for more time, judging by weekend reports from New York.
That has people wondering if an expensive settlement is in the offing.
In Australia, economic releases will be thin on the ground, with only new motor-vehicle sales due to be released later today.
Elders will update the market tomorrow on its trading after asking for its shares to be suspended on Friday morning.
Elders shares closed on Thursday at 82c, down 2c, or more than 2%, on the day.
Sigma Pharmaceuticals is due to hold its AGM today; expect a lot of criticism of the board from shareholders upset at the share price collapse and $389 million loss.
We could hear more on the future of the Aspen Pharmacare proposed offer as well.
The Australian Bureau of Agricultural and Resource Economics releases first quarter commodity export revenues and forecasts for 2010 financial year and the 2011 financial year tomorrow.
