Should Investors Be Wary of Sharp Price Movements Due to End-of-Month Rebalancing?
30.06.2021
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
- U.S. - Birkin: Remarks by the President of the Richmond Federal Reserve Bank
Yesterday, the three major U.S. stock indices all rose slightly, with the Dow Jones Industrial Average closing at $34,292, up 0.03% from the previous day.Meanwhile, the Nasdaq and the S&P 500 continued to hit new record highs for the second consecutive day; driven by tech stocks, the Nasdaq closed at 14,528 points, up 0.19% from the previous day.
In the foreign exchange market, the U.S. dollar is gradually gaining ground, and the USD/JPY pair is holding steady in the 110.49 range while other yen crosses are falling. Meanwhile, the GBP/JPY pair is falling more sharply; it is currently trading around 153.00, having briefly dipped below 153 yen to reach 152.6.
Today’s economic indicators include the UK’s Q1 GDP (final reading) and Q1 current account balance at 15:00, France’s Consumer Price Index (flash estimate) and Producer Price Index at 15:45, Turkey’s trade balance at 16:00,at 16:55, Germany’s unemployment rate; at 18:00, the Eurozone’s Consumer Price Index (flash estimate);at 20:00, remarks by UK MPC member Holden; at 21:00, remarks by U.S. Atlanta Fed President Bostic; at 21:15, U.S. ADP National Employment Report; at 21:30, Canadian GDP;22:45: U.S. Chicago Purchasing Managers’ Index, 23:00: U.S. Pending Home Sales, 23:30: U.S. Weekly Crude Oil Inventories, and 26:00: Remarks by U.S. Richmond Fed President Barkin are scheduled.As this is the last day of June, we will monitor price movements while remaining vigilant for sharp price swings caused by portfolio rebalancing.
