Looking Ahead: May 20 through May 24, 2013

Economic data mostly disappointed last week — Europe remained in the grips of recession and in the U.S., data were weaker than expected. However, Japan grew more than expected in the first quarter after an upwardly revised fourth quarter. Inflation in Canada, the Eurozone and the U.S. was muted thanks in part to declining gasoline prices. The Bank of Japan meets this week but no major policy moves are anticipated. Flash PMIs for May are on tap for the U.S., the Eurozone, Germany and France. On Wednesday, the Eurozone will hold a summit — no major initiatives are expected.

Looking Ahead: May 13 through May 17, 2013

Equities continued to advance last week while central banks including the Reserve Bank of Australia and the Bank of Korea reduced interest rates to spur on their respective economies and at the same time lower their currencies to reduce the pain for their export industries. The U.S. dollar exhibited strength against all of its major counterparts. The Japanese yen crashed through the 100 yen to a dollar barrier and continued to slide. First estimates of first quarter growth will be released for Japan, the Eurozone and many of its member states. Investors will continue to keep an eye on currency moves especially with the U.S. dollar.

Looking Ahead: May 6 through May 10, 2013

Both the European Central Bank and the Reserve Bank of India cut their policy interest rates last week — and both disappointed investors because they did not do more. Most economic data disappointed globally with the exception of the U.S. employment situation report. The Reserve Bank of Australia and the Bank of England meet. Economic data mainly consists of industrial production and merchandise trade data for March. Services PMIs in Europe will be watched to see if any part of the European economy is growing. Key labour force reports will be closely watched in Australia and Canada.