It’s a light week for local data in Australia. The RBA takes centre stage this week with the release of the minutes to this month’s Board meeting at 11.30am AEST on Tuesday, and then on Wednesday RBA Governor Stevens will be appearing before the House of Representatives Standing Committee on Economics.
His opening remarks will hit the screens at 9.30am but the question-and-answer session afterwards is likely to be of most interest.
Other than that local data only includes new motor vehicles and the Westpac leading index of economic activity.
Politically, the federal government is planning to hit the reset button on selling the budget, which has foundered on garbled messaging. Expect to hear plenty from Tony Abbott and senior ministers on the economic arguments for passing key saving measures including the fuel levy, the issue at the centre of Treasurer Joe Hockey’s disastrous end to last week. There are reports that some major concessions on some measures, including university funding, the school kids bonus and the $7 GP payment, are now in play.
Offshore US and UK CPI data is going to be huge for expectations of the timing of the start of rate hikes by the Fed and the BoE and currency traders of the Euro, Yen Aussie dollar and Pound will be watching closely.
Also out and of great interest is the advance guesstimates of the Markit purchasing manager indices for China, the Europe and US – while somewhat speculative these are always of interest.
Looking at the local stock market it’s another huge week for company results with the front end of the week particularly chock full of big name companies reporting.
It’s the whole economy in a box – or at least in a week of reports – miners, retailers, tourism, financial services, transport, insurance the list goes on but – some of the big names reporting include, Newcrest, Stockland, Arrium, BHP, IAG, QBE, Toll, AGL, Coca-Coal Amatil, Fortescue, Seek, Webjet, Wesfarmers, AMP, and the ASX itself.
Of course we have the tensions in Ukraine which will stay a focus, the ongoing debate about the when and if of Fed tightening and the strength or not of the US economy to drive stocks this week and 10 year interest rates in the US closing at 2.35% tells us something is up as the market awaits any clues from the Fed’s annual Jackson Hole conference.
Another potentially big week ahead whatever market you trade and of course the Wallabies are playing the All Blacks at Eden Park on Saturday, in what is a must-win match for the Wallabies following the weekend’s draw in Sydney.
Here is Westpac’s excellent calendar of major events for the week.
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