June in Europe may be a Turning Point

Even beyond talk of a “June swoon,” an unusual number of major events makes this month a critical time for markets.  From this week’s European Central Bank meeting, to OPEC’s Friday meeting and the G-7 over the weekend, the month is packed with events—not least of which is the Fed’s June 16 and 17 meeting. Greece has a payment due to the IMF on Friday, and that has added a level of tension to markets this week.

“Clearly, the resolution in Greece and how that risk resolves itself is the biggest near-term risk factor that has us concerned,” said Joseph Lupton, senior global economist at JPMorgan. “It has the potential to do the most damage.”

June is also a pivotal time for the economy. Fed Chair Janet Yellen has said the central bank could raise rates this year depending on the economy. So each measure of the economy’s strength has become very important, and Friday’s employment report tops of the list.