Investors to catch breath after tumult

A pause in the recent barrage of US economic indicators may give shell-shocked investors a reprieve this week, helping financial markets to stabilise after more than a month of turbulence.

Worries that rising global interest rates will stall economic growth have sparked a dash out of riskier assets in recent weeks, sending emerging market bonds and currencies tumbling and pushing major equity indices into the red for the year.

Signs that inflation is rising even as the world's biggest economy slows means the Federal Reserve is almost certain to raise US interest rates for a 17th time later this month to 5.25 per cent. But the big question - whether the Fed will continue to raise rates above that level - is unlikely to be settled this week with US housing starts and durable goods orders for May the only major releases of note.

In the euro zone, French consumer spending, preliminary German consumer price inflation and Italian consumer confidence figures could all shape expectations of how quickly the European Central Bank will raise interest rates in the coming months.

The ECB increased rates for the third time since December early in the month but gave little sign it was ready to accelerate the pace of tightening despite rising price pressures in the 12- nation bloc.

A speech by ECB president Jean-Claude Trichet to the European Parliament's economic and monetary affairs committee on Wednesday could yield further clues into the bank's thinking.

Monday

Meetings: ICAI and ASB host meeting on IFRS convergence (Collins Barracks, Dublin); The Trinity-IMI Graduate School of Management hosts open evening to showcase its management courses (IMI Headquarters, Sandyford, Dublin); Institute of European Affairs holds conference on "The EU in a Globalised World: The Rise of China" (Institute of European Affairs, Europa House, Dublin).

Indicators: Euro-zone foreign trade (April).

Tuesday

Results: British Energy.

Meetings: The Oireachtas Joint Committee on Communications, Marine and Natural Resources discusses An Post's 2005 annual report; the Oireachtas Joint Committee on Transport discusses operation of Dublin Airport and taxi regulation; Cork Chamber hosts "Town Meets Gown" event (UCC, Cork); briefing on business opportunities at festivals and events (Trinity Capital Hotel, Dublin); Accel Food and Drink Export Project (Heritage Hotel, Killenard, Co Laois); European Network on Industrial Policy holds 2006 International Conference - through Thursday (University of Limerick, Limerick).

Indicators: Irish trade statistics (Feb); US housing starts (May); German producer prices (May).

Others: Enterprise Ireland publishes annual report; Bank of Japan publishes monetary policy committee minutes.

Wednesday

Results: FedEx (H1), H&M (H1), Morgan Stanley (H1).

AGM: Arcelor (egm), Dragon Oil.

Meetings: Launch of nibusinessinfo.co.uk (Invest NI HQ Bedford Square, Belfast); Pricewaterhouse Coopers hosts real estate breakfast briefing (PwC offices, Wilton Place).

Indicators: French consumer spending (May); Japanese trade balance (May).

Others: OECD holds news conference on agriculture policies and trade liberalisation; European Central Bank president Jean-Claude Trichet holds quarterly monetary policy dialogue with economic and monetary affairs committee of the European Parliament; Bank of England publishes minutes of its June 7th-8th monetary policy committee meeting.

Thursday

Results: Oracle.

Meetings: ESRI holds seminar on industrial structure, ICT and aggregate productivity (ESRI, Burlington Road, Dublin).

Indicators: Irish wholesale prices (May) and index of employment in construction (April); euro-zone industrial orders (April); US leading indicators (May).

Others: OECD publishes Energy Technology Perspectives, Scenarios and Strategies to 2050; European Central Bank governing council and general council meet.

Friday

Indicators: Irish industrial disputes (Q1); US durable goods (May); German consumer prices (June).

Others: Irish Life & Permanent issues pre-close trading statement.