Markets closed in an ebullient mood Saturday morning after the PBOC eased policy and ECB President Draghi delivered more guidance, but still no action, on QE European style.
It sets up a probable positive week internationally on stocks and could be the circuit breaker which shakes the Australian stock market out of its recent bridges which saw it finish lower for 11 of the past 12 sessions.
On the data front it’s fairly light domestically with RBA deputy governor Lowe speaking on Tuesday to the Australian business economists’ conference. No doubt he’ll reinforce recent comments on the state of the economy from the RBA which highlight a growing level of disquiet.
We get some partial indicators which will point to next weeks Q3 GDP data. Of most interest is the release of Q3 Construction on Wednesday and capital expenditure on Thursday. Also out Thursday is the HIA New Home Sales and then RBA Credit on Friday.
The Murray Inquiry report is due soon also, perhaps this week. It’s a once in a generation chance to overhaul Australian finance and given financial planning scandals, too-big-to-fail, back capital, home lending and of course competition, it’s eagerly awaited.
Treasure Hockey had said he won’t sit on it.
Elsewhere on the political front, Jacqui Lambie seems to be moving closer to leaving the Palmer United Party and turning independent after last week’s breakdown with party leader Clive Palmer and her weekend in Tasmania talking to supporters. From interviews she gave in the weekend press, her split from the PUP seems inevitable.
More broadly, the Federal Government will be contemplating the release of the mid-year budget update which, with the falling iron ore price and the complex Senate holding up key savings measures, is likely to be an unpleasant set of numbers for a government which went to the country promising to fix the budget.
Internationally we get Q3 GDP data from Germany, the UK and the USA. German CPI is also out and this along with US personal spending, income and consumption data will also be important for traders, as will the Japanese CPI.
It could be a huge week for stocks, currencies, bonds and of course we’ll see if the iron ore price can find bottom and defy the doomsayers.
Here is Westpac’s excellent diary of all the key events for the week ahead. Have a great one.