Global financial markets had a bit of a reckoning this past week. A nearly unprecedented bull run in the Chinese equity markets fueled by margin debt. Peripheral sovereign debt spreads in Europe blew out in response to Greek intransigence. Over the weekend investors will be left to ponder the possibility of a Greek exit from the euro, while manufacturing data from China will is likely to increase the focus on policymakers in Beijing scrambling to ensure a soft economic landing.
Saturday, June 20: A new exhibition, Shoes: Pleasure and Pain, at the Victoria and Albert Museum in London is expected to draw large crowds during its first weekend since opening. The collection includes designs from a variety of historical periods and styles such as classic formal wear and 1970s punk fashion by Malcolm McLaren and Dame Vivienne Westwood.
Monday, June 22: The National Association of Realtors releases existing home sales data figures for the U.S. Consensus forecasts among economists call for the pace of sales to improve to an annualized pace of more than 5.2 million as home buyers rush to lock in historically low mortgage rates in advance of anticipated tightening by the Federal Reserve.
Tuesday, June 23: Initial HSBC manufacturing purchasing manager index data for China will be released. The closely watched indicator focuses on midsized private-sector players as opposed to the official National Bureau of Statistics measure, which is a survey of major companies. As the pace of factory activity in the worlds largest importer of raw materials abates, commodity markets remain extremely sensitive to any shift in demand signals from Beijing.
Wednesday, June 24: Footwear and apparel giant Nike announces fiscal fourth-quarter earnings. Brian McGough of Hedgeye, one of the most closely followed research analysts in the sports apparel sector, in May forecasted that the Beaverton, Oregon-based company would overcome the currency volatility woes bedeviling other consumer discretionary stocks, as a strong U.S. dollar is offset by accelerating e-commerce sales.
Thursday, June 25: It is possible that the European Councils summit in Brussels, which starts Thursday, will be the absolute last chance for Greece to make a deal with creditors to avoid default on debt repayments.
Friday, June 26: Initial June University of Michigan consumer sentiment index data will be released, providing a glimpse into the mood of U.S. shoppers. The index was created in the 1940s by a team of academics headed up by Professor George Katona, a pioneer of the study of the interrelationship between psychology and economics.