While the Australian June 30 earnings season comes to an end this week, the lead up to the June quarter GDP figures steps up with the release of key data on construction and investment.
Offshore, the second estimate of US second quarter economic growth is out later in the week, the monthly release of early estimates for inflation and unemployment will be issued for the Eurozone, and the usual end of month economic data from Japan will be released as well.
And the US second quarter reporting season is in its final days this week, with more retailers due to report.
In Australia, we will see data on the value of construction work done in the June quarter, and then the private investment data for the same period (Wednesday and Thursday respectively.)
The construction data will be to be soft but supported by the home building boom, while the private investment figures will again produce a weak reading as mining investment continues to slow.
The focus in this survey though will be on investment intentions for the rest of 2014-15, which are expected to show further signs of an improving outlook for non-mining related investment.
Tomorrow sees the preliminary estimates of the current account for the June quarter issued – it will confirm the big turnaround in the impact of trade on GDP growth from the very strong March quarter.
Producer prices for the June quarter will also be released.
New home sales data on Thursday from the industry are again expected to remain solid and private lending figures from the Reserve Bank on Friday for July will show another small improvement.
It will also be the final week of the Australian June half profit reporting season with 50 major companies due to report, including BlueScope Steel, Worley Parsons, Qantas and Woolworths.
In the US, we can expect a solid bounce in new home sales after a weak June and continued strength in the Markit services PMI for August (both tonight, our time).
There should also be another rise in durable goods orders, modest gains in home prices, a slight fall in consumer confidence (all out tomorrow night, our time), a rise in pending home sales (Thursday) and a continued benign reading for the core private consumption deflator (Friday) which is the Fed’s preferred inflation measure.
The second reading of June quarter GDP will be out Thursday night and will confirm the strength of the rebound from the weak first quarter.
Among the handful of companies reporting this week are Best Buy, the struggling US consumer electricals group, a slate of big Canadian banks, Tiffany and Co, the upmarket jewellery chain, grog group, Brown and Forman, homewares retailer, Williams Sonoma, underperforming clothing group, Abercrombie and Fitch and Dollar General, the big cheap as chips retailer which is in a two way bidding war for smaller rival, Family Dollar.
And next weekend is the Labor Day long weekend in the US which signals the end of summer and the start of the return to school, university and work for millions of Americans from next week onwards.
In the Eurozone, we can expect a slight fall in confidence readings (Thursday) and continuing low inflation in August (Friday) and another weak employment report.
The OECD also updates its statistical release on GDP growth across its members.
In Asia, Japanese data for household spending, industrial production and the labour market will be released Friday.
They will be watched for further signs of recovery following the tax-induced growth contraction in the June quarter.
Inflation data will also be released Friday. There is already a sign that inflation is turning lower. If it continues it will be an increasing concern.
China sees more June 30 earnings reports issued, with the huge China Telecom leading the way.
