This week's data releases highlight Wednesday's Federal Open Market Committee (FOMC) statement, which will likely present a dovish tone. However, those who are expecting for the announcement of renewed asset purchases will likely be disappointed.
A series of housing data will be released over the course of the week, including: Monday's NAHB Housing Market Index, Tuesday's housing starts and building permits, and Thursday's existing home sales and FHFA Home Price Index. Economists expect these reports to show a struggling housing market recovery.
In Europe, investors will be getting many euro-area surveys, U.K. labor market report and the Bank of England's Monetary Policy Committee (MPC) minutes. Market sentiment, however, will be largely driven by the French legislative election and Greek election.
Elsewhere, inflation is expected to ease in Hong Kong, India is likely to cut its policy rate while Taiwan is likely to keep its rate on hold.
Below are entries on the economic calendar from June 18 to June 22. All listed times are EDT.
10:00 a.m. - Economists are looking for the NAHB Housing Market Index to retreat to 28 in early June from 29 in May. The NAHB housing index has outpaced new home sales for the past nine months.
3:30 p.m. - Treasury auctions 13-week and 26-week bonds.
G20 -- G20 summit (to June 19).
E17 - European Central Bank executive board member Joerg Asmussen speaks on Central Bank's role in curbing debt crisis in Berlin.
U.K. -- Nationwide consumer confidence index for June.
TBA - FOMC: first day of 2-day meeting.
8:30 a.m. -- Housing starts are likely to increase to 720,000 in May from 717,000 in April. Homebuilder sentiment has continued to improve and economists look for modest increases in both single family and multi-family starts. Building permits should increase to 727,000 in May from 723,000 in April.
3:30 p.m. -- Treasury auctions 4-week bonds.
Germany -- Constitutional Court rules on European Stability Mechanism (ESM) bailout fund and fiscal pact.
Finland -- Parliament to vote on the ESM.
France -- Business climate index for June.
U.K. - May consumer price index (CPI) and retail price index (RPI).
E17 -- April construction output.
E17 -- June ZEW economic sentiment index.
Germany -- ZEW economic expectations index.
Japan - May trade balance.
7:00 a.m. -- MBA Mortgage Index for the week ending June 16.
12:30 p.m. -- FOMC rate decision. While the macro data have softened, recent statements by senior officials, including Bernanke, suggest that current economic conditions likely do not warrant additional policy action. Economists do not expect any new policy initiatives to be announced at the June FOMC meeting, however, the statement should sound dovish and include downward revisions to the Fed's economic projections.
2:15 p.m. - Fed Chairman Ben Bernanke answers questions from the media.
Germany -- Chancellor Angela Merkel and Dutch Prime Minister Mark Rutte meet to discuss on euro zone crisis and economic policies in the European Union in Berlin.
U.K. - The Bank of England's Monetary Policy Committee (MPC) minutes, bank rate vote and asset purchase vote.
UK -- April average weekly earnings, core average earnings, International Labor Organization (ILO) unemployment rate and claimant count unemployment.
Norway -- June interest rate announcement.
Japan -- Index of all-industry activity for April.
Germany - May producer price index (PPI).
New Zealand - First-quarter gross domestic product (GDP).
South Africa -- May CPI.
8:30 a.m. - For the week ending June 16, initial jobless claims are expected to come in at 380,000. In the prior week jobless claims were 386,000.
8:58 a.m. -Markit Flash U.S. Manufacturing PMI will likely drop slightly to 53.5 in June from 54.0 in May.
10:00 a.m. - Economists look for the Conference Board's index of leading indicators to rise 0.1 percent in May following a decline of 0.1 percent in April. The new orders component of the ISM, the interest rate spread and an increase in building permits will likely provide a boost to the indicator. Meanwhile, the largest drag on the indicator is likely to be a decline in equities, the average workweek for manufacturing and a drop in consumer expectations.
10:00 a.m. - Existing home sales are expected to fall about one percent to 4.57 million units in May from 4.62 million units in April. The two leading indicators for existing home sales - pending home sales and mortgage applications - have been soft. After rising in five of the past six months, pending home sales plunged 5.5 percent in April.
10:00 a.m. - After falling sharply to -5.8 in May, the Philadelphia Fed manufacturing index is expected to rebound to 1.0 in June.
10:00 a.m. -- Economists look for the FHFA Home Price Index to rise 1.0 percent in April, consistent with improvement in other home price indices during the same period.
5:00 p.m. - Treasury auctions 30-year TIPS.
Taiwan -- Benchmark interest rate for June.
Spain -- Bank recapitalization due to be completed.
Germany -- Coalition/opposition party set to conclude agreement on fiscal compact ratification/FTT.
E17 -- ECB non-policy meeting.
Turkey -- Benchmark repo rate for June.
E17 -- Eurogroup meeting.
France -- Flash manufacturing/services PMI index for June.
Germany -- Flash manufacturing/services PMI index for June.
E17 -- Flash manufacturing/services/composite PMI index for June.
E17 -- ECB current account for April.
E17 -- Flash consumer confidence index for June.
U.K. - May retail sales.
U.K. -- CBI industrial trends (total orders) for June.
Ireland - Q1 GDP.
No notable economic events in the U.S.
E17 -- France President Francois Hollande, German Chancellor Angela Merkel, Spain Prime Minister Mariano Rajoy and Italy Prime Minister Mario Monti to discuss the euro zone crisis.
E27: The Economic and Financial Affairs Council (ECOFIN) meeting.
China -- HSBC flash manufacturing PMI index for June.
Germany - June IFO business climate index, current assessment index and business expectations index.
Italy - June consumer confidence index.
Mexico -- First half bi-weekly CPI for June.
Source: Central banks, European Commission, Reuters, Market News, Barclays Capital, Bank of America Merrill Lynch