Monday Morning Meeting Notes (06/19/2023)

General Info:

• U.S. consumer price index (CPI) for May was broadly in-line with expectations
• CPI increased 0.1% month-over-month and 4.0% year-over-year
• Core CPI, which excludes volatile food and energy prices, increased 0.4% month-over-month and 5.3% year-over-year
• As was expected by market participants, the Federal Reserve (Fed) voted unanimously to pause its rate hikes at its June meeting
• The Fed had raised rates at 10 consecutive meetings, with the fed funds rate having increased from 0.00-0.25% in March 2022 to a range of 5.00-5.25% today
• In line with expectations, the European Central Bank (ECB) voted to raise its main refinancing rate by 0.25%, bringing the main refinancing rate to 4.00%
• Fun Fact: People used to say "prunes" instead of "cheese" when getting their pictures taken. In the 1840s, a cheesy grin was seen as childish, so a London photographer told people to say "prunes" to keep their mouth tight. This was also a byproduct of the long exposure time of cameras back then and the ease at which we can maintain a neutral face rather than a smile. That helps explain all those sour faces!

Monday 06/19:

• U.S. financial markets are closed in observance of the Juneteenth holiday
• Banks are closed, it’s a non-settlement day, and no wires/checks will be processed

Tuesday 06/20:

• FedEx and La-Z-Boy report earnings
• U.S. housing starts and building permits data for May
• Taiwan export orders for May

Wednesday 06/21:

• June Solstice, which marks the beginning of summer in the Northern Hemisphere and beginning of winter in the Southern Hemisphere
• Due to the Sun reaching its highest point on this day in the Northern Hemisphere, the sunsets last longer as the Sun actually sets more slowly around the time of the solstice
• Fed Chair Jerome Powell delivers his semi-annual congressional testimony before the House Financial Services Committee
• U.K. CPI data for May

Thursday 06/22:

• Fed Chair Jerome Powell delivers his semi-annual congressional testimony before the Senate Banking Committee
• Bank of England (BOE) monetary policy decision
• U.S. existing home sales for May
• U.S. Conference Board leading index
• U.S. current account balance
• U.S. initial jobless claims and continuing claims

Friday 06/23:

• S&P Global Manufacturing PMI data for the U.S., Eurozone, U.K., Germany, and France
• Japan reports both Manufacturing and Services PMI data via the Jibun Bank Japan PMI reports