Home > Uncategorized > 2012/06/04: Quick Post: Weekly Calendar and Perspective now available

2012/06/04: Quick Post: Weekly Calendar and Perspective now available

© 2012 ROHR International, Inc. All International rights reserved.

The Weekly Report & Event Calendar is available through the link in the right hand column. The focused comments below it are now also available as well in the calendar section as the now regular weekly Summary Perspective on Key Influences. We hope you find that useful as well. It also has a Concise Market View at the end.

For those of you who have not already seen it, there is a lot of emphasis this week on the mid-to-late part of the week. That would be the case in any event, but is exacerbated this week by report and event displacements due to UK and European holidays. And that includes a lot of central bank and international finance influences beginning on Wednesday…

…which is when the UK gets back from its four-day Queen’s Jubilee weekend holiday, right into any European Central Bank meeting and press conference pushed up by one day due to a partial holiday Thursday on the Continent. And based upon the continued intense pressures to address the European Sovereign Debt Crisis, we suspect that the ECB press conference Q&A on Wednesday will be a volatile affair once again. That said, we do not expect ECB President Draghi to suggest any bold new independent action by the bank.

In fact, it is far more likely that he ends up sticking to his recent position that the burden of decisions to empower further Eurozone financial support to its ailing members is in the lap of the political class. Nonetheless, that will make for a very interesting press conference Q&A, as the assembled financial reporters still likely press him on what the ECB is prepared to do if the political class fails to reach agreement on important support efforts. Needless to say, the most important of those is consideration of how much funding can be extended, and in what form, to facilitate the recapitalization of the weakest of the Spanish banks?

With a Spanish bond auction scheduled for Thursday, that is going to be a key influence on global equity markets this week. And speaking of Thursday, that morning Chairman Bernanke testifies before the Joint Economic Committee of Congress. Along with all of the other central bank-speak and other important central bank influences, there is a very important Fed open board meeting Thursday afternoon on Capital Rules.

It is the long deferred decision on whether to approve an additional 2.50% reserve requirement for the largest banks on top of the 7.0% Tier 1 capital reserve already agreed under the Basel III rules. If it is approved, it seems a very strange week to further constrain the lending ability of big banks. And that is just the sort of thing that can cause economic and market weakness to feed on itself. Along with the problems in Europe, this would be an additional self-inflicted burden on already depressed Keynesian ‘animal spirits’ in the US and elsewhere. Sort of like the one-two punch the equities suffered at the end of last week on weaker than expected global Manufacturing PMI’s right into that weak US Employment report. We shall see.

There are no General Market Observations or EXTENDED TREND IMPLICATIONS at the end of this post, because all of that is covered in the Concise Market View at the end of the Summary Perspective.

Thanks for your interest.

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