A fairly quiet week ahead here and offshore.
The Australia and NZ June 30 reporting season ends Friday (though there will be loss-making stragglers next week), the data flow into next week’s June quarter GDP report starts and the shape of the new federal government takes shape after last week’s madness that destroyed the Prime Ministership of Malcolm Turnbull.
Offshore it’s the mid month surveys of activity in manufacturing and services, plus some key meetings in the US and a trial where Donald Trump’s former campaign manager, Paul Manafort faces far more serious charges than the ones he was convicted of last week.
There’s also second quarter GDP updates this week from the US, Canada, Brazil, France, Italy, Denmark, Poland and India.
In Australia, the major release is the June quarter business investment figures to be released Thursday will help firm up expectations for June quarter GDP data to be released and update business investment over the year ahead.
The AMP’s Chief Economist, Dr Shane Oliver says “We expect June quarter investment to rise 0.8% and business plans for this financial year to rise slightly.
Building approvals figures for July are out on Thursday and Dr Oliver expects a fall of 5% after a strong rise in June. Credit growth data from the Reserve Bank for July is out on Friday and will be watched for signs on lending for home loans and business.
The Australian June half earnings reporting season will wrap up with 24 major companies report this week – watch for figures from Boral, Bellamy’s, Ramsay Health Care and Harvey Norman.
In the US, it’s a quiet week – President Trump will no doubt continue to be excitable, house prices data is expected to show more price rises, consumer confidence is expected to reman solid and July personal spending and inflation data (as measured by the core private consumption deflator) will be issued on Thursday.
The most important data release will be the second reading of US June quarter GDP (Wednesday) which is tipped to be cut to 4.0% from the initial report of 4.1%.
Canadian second quarter GDP is also out later this week with faster growth tipped than the 1.4% annual rate in the first quarter.
In the Eurozone unemployment for July is expected to have remained at 8.3% and August core inflation to remain at 1.1% year on year with both to be released Friday.
Japanese data to be released Friday is likely to show continued labour market strength but flat industrial production. Retail sales figures for July will also be released.
In China business conditions surveys August are out on Friday and will be closely watched for any slowing that may be related to tighter non-bank lending conditions and trade war worries.
