Markets And Economy

Weekly Market Outlook

June 10, 2024 Jeffrey Kleintop

Chief Global Investment Strategist Jeffrey Kleintop's 90-second take on the markets for the week ahead.

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Weekly Market Outlook

[Screen shows “Weekly Market Outlook with Jeffrey Kleintop”]

[Jeff holds up an illustration of a graduation cap labelled "Poli Sci"]

From the aftermath of the European Union parliamentary elections, meetings by central banks in the U.S. and Japan on interest rates, and AI-related earnings, here’s what you need to know for the week ahead.

On Sunday, the European Union parliamentary elections wrapped up after they started on June 6. It doesn’t take a degree in political science to see the takeaways may move markets with the expectation that right-leaning parties will gain seats and may shift EU-wide policies on trade and climate.

On Wednesday, after the rate cuts by the European Central Bank 

[Jeff holds up an illustration of a person chasing a bag of money]

and Bank of Canada last week, interest rate futures markets are placing the odds of a cut by the Fed at just 1%. The policy statement and news conference by Chair Powell will be watched closely for signs on the path ahead after job growth surprised last Friday. On the same day, the U.S. will release May CPI expected to remain at 3.4%, well above the Fed's 2% target.

On Friday, 

[Jeff holds up an illustration of the islands of Japan against a dark circle labelled "Japan"]

the Bank of Japan meets on interest rates. Solid wage growth and the increase in utility costs will keep core CPI inflation above 2% this year. Markets, including the yen, 

[Jeff holds up a sign labelled "Words" over a line above "Actions"]

may move if Governor Ueda appears to prepare the market for a hike in July maybe, by making hawkish signals in the guidance more explicit. We also expect the BOJ to announce it will start reducing bond purchases, but that shouldn’t come as a shock given all the talk ahead of time.

In earnings this week artificial intelligence continues to be at the forefront this earnings season when chipmaker Broadcom and software giant Adobe report this week. Both are expected to post strong sales growth.

[Jeff holds up sign saying "Thank You"]

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