The back end of the month is usually quiet on the data release front here in Australia and that is the case again this week with a light data calendar. But that doesn’t mean it’s going to be a quiet week with plenty of local and global catalysts.
Construction work done on Wednesday is the first economic release of note but HIA new home sales and especially Private Capital Expenditure on Thursday will be watched closely.
Friday’s private sector credit will give an insight into whether the “animal spirits” that Glenn Stevens has called on to drive the next phase of economic growth in Australia are showing any signs of life.
On the reporting front it’s another busy week on the ASX although less big names this week. Flight Centre is reporting along with Virgin and Westfield.
Parliament is back this week as well which will give the Government an opportunity to prosecute its Budget argument but it also returns Clive Palmer and his minions to the pulpit. Increasingly markets are watching PUP, and consumers might be looking at it with revived interest too, given that the government has warned that if they can’t get the savings measures through, tax increases are an option.
Offshore the market will be digesting the impact of Fed Chair Janet Yellen and ECB President Mario Draghi’s speech’s at Jackson Hole over the weekend. Yellen was less Dovish than expected and Draghi really painted a picture of a moribund economy in need of monetary policy help – the question for the market is whether he will persuade his colleagues on the ECB Governing Council to follow through with quantitative easing. Joe Weisenthal has taken an extensive look at Draghi’s speech here. It’s also of interest that he has pointed out that government budgets across the EU could be more co-ordinated – something that won’t wash well with Eurosceptics.
Key data releases in Europe include include German IFO business sentiment and expectations along with Gfk consumer confidence as well as unemployment and inflation data in Germany.
In The US Chicago and Dallas Fed Indices are released along with new home sales, durable goods (huge) and the house price indices including Case-Shiller.
Thursday is going to be a huge day for markets with the release of Q2 GDP in the US. Friday likewise is busy with Japanese CPI and employment, EU CPI (huge) US core personal consumption.
Here is Westpac’s calendar of all the key economic events for the week.
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