A quietish week with the Reserve Bank’s Stability Report on the Australian Financial System a highlight on Thursday, interim figures from retailer, David Jones, TV group, Ten Network and the 2007-08 final figures later today from Sigma Pharmaceuticals.
After the long weekend, only some Asian markets and the US traded overnight. China, Japan and the Middle East were quiet in the wake of the rebound Thursday night on the Dow.
Banks though resumed trading with some hesitation after the Bank of England, the Fed and the European Central Bank pumped over $US70 billion in short term assistance into the markets to handle the long holiday.
Investors will be taking note of commodity price movements to see if the hammering of last week shows any sign of easing, while the release overnight of February sales of existing homes merely confirmed the belief that the problems isn’t over until the US housing sector stabilises and that won’t be soon.
Besides the home sales figures, other data to be released this week will tell us about US house prices, new home sales, US consumer confidence, durable goods orders and give us the latest reading from the Fed’s preferred measure of inflation.
That’s the so-called PCE price index. It will be released as part of the report on personal income and consumption. (PCE stands for personal consumption expenditures and strips out volatile food and energy prices much in the way that our Reserve Bank looks at inflation). As well, the final reading of US 4th quarter Gross Domestic Product is expected on Thursday.
German business conditions for March will also provide some guidance as to whether Europe is still holding up or not.
The profits from David Jones have already been flagged: what investors will be looking for is its new forecasts for the second half of the year.
The retailer said earlier this month that first half Profit after Tax Guidance "increased to $87.5 – $89 million – representing 23% – 25% underlying growth on 1H07 (updated from previous guidance of 8% – 13% growth). First half total Sales of $1,135.9 million vs. $1,037.6 million in 1H07 – representing growth of 9.5% (First half like for like sales growth 7.2%)."
David Jones shares closed down 12c on Thursday at $3.38.
Ten shares fell 3c to $2.25. The Network says it is on track for a solid first half result after group revenue rose 11% in the first quarter and group EBITDA was 14% higher at $122.5 million. EBITDA in the TV business was up 18%.
The RBA will release its Financial Stability Review on Thursday. It which will make interesting reading given all the turmoil in credit and share markets over the last six months. Job vacancy data will also be released. And RBA Governor, Glenn Stevens speaks in Sydney, also on Thursday.
TUESDAY:
Sigma Pharmaceuticals annual results.
WEDNESDAY:
David Jones interim profit.
THURSDAY:
Reserve Bank Financial Stability Review; RBA Governor speaks in Sydney at a financial conference; interim results from Ten Network, Nufarm and Brickworks; MFS Diversified Group EGM in Sydney.
FRIDAY:
MFS EGM in Melbourne; ASIC-Fortescue Metals Court hearing in Perth.
