It’s a busy week in Canberra with the Chinese President Xi Jinping addressing Parliament today and the Australia-China Free Trade Agreement widely expected to be signed as well.
This will be followed quickly by an address from Indian Prime Minister Narendra Modi to both houses in a joint sitting tomorrow.
Economically it’s far less interesting as the quieter second half of the month begins. But on markets the question, even as indices sit at highs, is whether the stall in the US stock market rally last week is a pause that refreshes or a signal that all the good news is priced in.
Last week the Dow rose 0.35% to 17,635 and the S&P 500 0.4% to 2,040 (all-time weekly closing high). The Nasdaq was up 1.22%.
The jury is out but whichever way the shoe drops, it’s clear that the Aussie market is closer to fully priced than most, with Friday’s 1% rally rescuing what looked like a pretty poor week on the ASX.
In terms of events for the week today we get the release of Australian new motor vehicle sales but Japanese GDP is the big one in the region today.
Tuesday the RBA minutes are out and governor Stevens is making an address at CEDA. China sees the release of property prices in October. In Germany, the ZEW survey will be huge and in the US the NAHB housing market index will be of interest.
Wednesday night is probably the highlight of the week’s calendar with the release of the minutes to the recent FOMC meeting. Traders will be very forensic now that QE has ended and the tightening cycle is likely to begin in 2015.
Urbane to that debate will be US CPI for October due Thursday, but earlier in the day we’ll get the flash HSBC Chinese PMI.
Of course, we’ll also have the shenanigans in the PUP party continuing with the tussle between party Leader and founder Clive Palmer and outspoken Tasmanian senator Jacqui Lambie continuing.
We’ll hear lots about a nebulous 2.1% agreement from the G20 to increase global growth from the Government but Bill Shorten and the Opposition are likely to want to focus on climate change or other topics.
And of course the post-mortems on Australia’s rugby, league and cricket teams will dominate dealing room chatter this morning after a dismal weekends results.
Here’s Westpac’s excellent diary of all the evnets and data releases that matter: