FOMC members support one more hike in 2017

The US stock market and the ICE US dollar index advanced last week. US stocks closed at record highs on Monday as technology stocks rebounded after Friday selloff on high valuation concerns. Treasury yields rose on New York Federal Reserve President William Dudley’s comment the economy was in good shape and that he wasn’t paying much attention to signals of concern from the bond market. Chicago Fed President Charles Evans said the Fed could wait until December instead of raising rates next in September. The dollar inched higher. US stock indices fell on Tuesday as oil prices slumped: the West Texas Intermediate crude contract entered a bear-market territory falling 20.6% from 2017’s year-to-date high. SP 500 and the ICE dollar index ended lower on Wednesday as oil slide continued. Biotechnology stocks rallied after reports President Donald Trump has drafted an executive order that would ease drug industry regulations. Philadelphia Fed President Patrick Harker, who is a voting member of the Fed policy committee, said the September meeting could be a good time for the central bank to begin the process of shrinking its balance sheet.

The US stock market closed lower on Thursday with the dollar little changed. Treasury yields edged lower after a Republican Senate bill to overhaul health care met resistance from some Republicans that feel the bill is watered-down and keeps too much of Obamacare’s existing provisions intact. The US stock market closed higher on Friday as new home sales in May, preliminary June readings for manufacturing and services PMIs advanced, albeit less than expected. The SP 500 ended the week 0.2% higher and the US dollar index gained 0.15% for the week. This week final GDPs for US, UK and Canada will be released on Thursday and Friday. On Monday durable goods orders will be published in US and Conference Board will report consumer confidence on Tuesday. On Thursday German preliminary inflation report will provide a preview of euro-zone’s June inflation due on Friday.