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The Federal Open Market Committee (FOMC) begins a two-day meeting on interest rate policy. The central bank will likely not raise rates at this meeting, with the main focus on individual policymakers’ economic projections that are likely to reflect poor growth in the first quarter. Investors will watch for any hints from Fed chair Janet Yellen at a press conference after the meeting about when the Fed will be in a position to hike rates.
New home constructions likely slowed in May, even as rising demand for housing has led to a shortage in inventory and pushed prices up. In April, housing starts jumped to their highest level in more than seven years, offering hope for accelerated growth. The Commerce Department is expected to report that groundbreaking for new homes fell to a 1.1 million-unit rate in May, from a 1.135 million-unit rate in April. Applications for permits were also likely down in May.
Adobe Systems Inc is expected to report a second-quarter profit above estimates, according to Thomson Reuters StarMine. The Photoshop maker has been switching from traditional box licenses to web-based subscriptions for its Creative Cloud software bundle to help attract more predictable recurring revenue. Analysts will look at whether the company forecasts a fall in average revenue per user as Adobe offered more discounts for Creative Cloud, which includes its Photoshop, Illustrator and Flash software.
Statistics Canada releases April data for foreign investment in Canadian securities. Foreign investment jumped to C$22.47 billion in March, the biggest inflow since May 2012, as investors picked up corporate bonds and stocks. (0830/1230)
Brazil’s statistics agency IBGE releases April data for retail sales. Retail sales in Brazil likely tumbled 0.7 percent in April, slightly better than the 0.9 percent drop in March, as a spike in consumer prices and rising unemployment put shoppers on edge.
LIVECHAT: EMERGING MARKETS - How to play global debt and currency markets in a rising U.S. rate environment with Brown Brothers Harriman Strategist Win Thin Emerging Markets' central bankers are already starting to move on rates, anticipating the return to normalcy for U.S. monetary policy, but not all are going to get the timing right. Join Brown Brothers Harriman Emerging Markets Strategist Win Thin to discuss which ones are most at risk as the U.S. shifts gears. To get into the conversation, click here, bit.ly/1kTxdKD (Compiled by Nivedita Balu; Editing by Simon Jennings)