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5 Things to Watch on the Economic Calendar This Week

Published 2016-06-26, 05:37 a/m
© Reuters.  5 Things to Watch on the Economic Calendar This Week
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Investing.com - In the week ahead, market players will be continuing to digest the fallout from Britain's vote on Friday to leave the European Union, which heightened fears over the global economy and triggered historic falls in stocks and currencies.

Market volatility is expected to remain high after global stocks saw more than $2 trillion wiped off their value on Friday and the pound fell by as much as 10%.

Ahead of the coming week, Investing.com has compiled a list of the five biggest events that are most likely to affect the markets.

1. Possible UK credit rating downgrade

Ratings agency Moody's warned Friday that it may downgrade the U.K.’s credit rating as it lowered the outlook to “negative” from “stable” after the country voted to leave the EU.

Moody's said the result would herald "a prolonged period of uncertainty".

Rival ratings agency Standard & Poor's, the only one of three major ratings agencies that still has a AAA rating on Britain, said Friday the Brexit vote meant the AAA rating was no longer tenable.

2. EU leaders to discuss Brexit

EU leaders are to hold a two-day summit meeting on Tuesday and Wednesday in Brussels, to discuss how they should handle Britain’s decision to leave the bloc. U.K. Prime Minister David Cameron will attend the first day of the summit.

3. Janet Yellen speech

Federal Reserve Chair Janet Yellen is due to speak at an ECB central bank conference in Portugal on Wednesday, with investors looking for indications on how Brexit will alter the outlook for the U.S. economy and the path of interest rates.

Traders have now discounted any chance of a U.S. rate hike this year and federal funds rate futures are even signaling that a rate cut may be on the cards.

4. U.S. earnings results

Nike (NYSE:NKE) is to announce its quarterly earnings results after the close of the U.S. market on Tuesday.

General Mills (NYSE:GIS) and Monsanto (NYSE:MON) are to report their earnings ahead of Wednesday’s U.S. market open. ConAgra Foods (NYSE:CAG), Constellation Brands (NYSE:STZ) and Darden Restaurants (NYSE:DRI) are to report on Thursday.

5. Global manufacturing data

China, the U.K. and the U.S. are all to release survey data on manufacturing activity on Friday.

The data will be closely watched for signs that the global economy is losing momentum.

Stay up-to-date on all of this week's economic events by visiting: http://www.investing.com/economic-calendar/

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