Global Markets on tenterhooks this week

The global markets on Monday have opened on a muted note and probably have consolidated ahead of the week which is filled with uncertainties. Fed rate meet which will likely commence from June 14 will have an impact on the stock markets across the globe. The two-day meet which is likely to get over by June 15 is marginally uncertain.

However, looking at the US data, the rate cuts in this meet are most unlikely.The US job data, and non-farm payroll numbers of May have remained weaker than expected. With the US economy unstable and inflation remaining weak, chances of a rate cut in this Federal Open Market Committee (FOMC) meet look timid. However, the overall labour market has improved.

The policy meet of Bank of Japan will begin on June 16, and may surprise the markets, as additional easing is expected this week. However, the yen has climbed against the dollar. The BOJ has adopted a negative interest rate earlier. 

On June 16, Bank Indonesia will declare its policy. In the first three policy meetings of 2016, Indonesia’s central Bank (Bank Indonesia) had cut its benchmark BI rate gradually yet aggressively from 7.50 percent to 6.75 percent, as inflation, the rupiah rate and Indonesia's current account deficit were regarded as under control. 

New Zealand and Australia on the same day (June 16) will declare their Q1,2016 GDP data and May employment data respectively. Looking at such global events in this week, the market will probably be uncertain in the week ahead.