Photo: Flickr / h080
From Nomura, 3 big events are coming up:Greece (press conference at 12:00 EDT): Eurogroup President Juncker will meet Greek Prime Minister Samaras to discuss Greece’s proposal to extend the €11.5bn fiscal adjustment programme by two years, completing it by 2016 instead of 2014 as agreed earlier. This is the first of three meetings scheduled for Samaras, as he meets Chancellor Merkel and President Hollande on Thursday and Friday, respectively. Thus notable progress today is unlikely. Note that President Hollande and Chancellor Merkel will also hold a meeting in Berlin on Thursday before meeting Samaras separately.
US existing home sales (10:00 EDT): Sales of existing homes declined by 5.4% in June, held back by a lack of inventories. We forecast an increase of 0.6% in July (Consensus: 3.2%) supported by pending home sales, which tend to lead existing home sales by one to two months. The tepid rebound we expect in July is the result of downward pressure from a slowdown in mortgage applications and continued tight inventories.
FOMC minutes (14:00 EDT): The minutes from the 31 July – 1 August Federal Open Market Committee (FOMC) meeting should provide more colour on the committee’s decision to more assertively state that it “will provide additional accommodation as needed.” Moreover, participants’ characterization of current conditions and risks to the outlook will be helpful in gauging the Fed’s reaction function for providing further policy accommodation.