It’s a very quiet week domestically and internationally for major statistics and other potentially market moving data.
The fun and games of last week in the wake of the Chinese move to lower the value of the yuan and gradually move to a more market-driven method of setting its value was more than enough for investors large and small, especially with the early “China devalues” scare.
This week it’s the new bailout of Greece which should help settle markets, while the flash report on the health of China’s huge manufacturing sector will dominate markets on Friday.
In Australia, the flow of domestic economic data dries up in the coming week, as it always does in the middle of the month.
Only the June 30 earnings season will keep us interested and involved – this week around 80 ASX 200 companies release either full year or interim results.
Results include figures from Wesrfarmers, QBE, Woodside (both interims), Newcrest, Insurance Group Australia, Seven West Media, Sonic Healthcare, Coca Cola Amatil (interim) and Medibank Private.
The major economic release of the week in Australia is tomorrow’s when the Reserve Bank releases minutes of the August Board meeting.
The RBA’s changed views on the value of the dollar and concerns about wages and the state of the labour market were the big themes from the meeting on August 4, especially in the third Statement of Monetary Policy for the year released a few days later.
Also tomorrow the Australian Bureau of Statistics releases data on new car sales which are based on the already released industry figures.
In the US, the minutes from the Fed’s last meeting (out Wednesday night, our time) are expected to confirm that it remains on track for a rate hike later this year, most probably next month.
On the data front, watch for housing starts (Tuesday night, our time) existing home sales (Thursday), core consumer price inflation (Wednesday night, which is expected to remain low).
As well, the New York and Philadelphia regional Fed manufacturing surveys will also be released and the Markit manufacturing survey (Friday) for August is likely to remain solid.
The June quarter US earnings season winds down this week, though results will come from several major retailers, led by Wal Mart Stores, the world’s biggest. As well Gap, L Brands, Target (Number 2 in the US), Sears and hardware giants, Home Depot and Lowes Cos (which could say something about its Masters joint venture in Australia with Woolworths) release their latest figures.
Hewlett Packard also reports, as does big farm equipment group, Deere and Co. Hormel, the Spam company, is another releasing results this week, along with the big online services group, Salesforce.com.
In Asia, Japanese June quarter GDP (later this morning) is expected to show a decline after two quarters of growth, and again raise questions about the real strength of the country’s recovery.
China releases its important July house price data on Tuesday.
And on Friday we get the usual mid month releases from Markit of the ‘flash’ reports for manufacturing for August. The Chinese survey, released with Caixin magazine, is the most important one for Australia.
In Europe, the third bailout of Greece (worth 86 billion euros) has been set, meaning Greece’s broken banks will be saved and the country will be able to make a 3.2 billion euro repayment to the European Central Bank ahead of a Thursday deadline.
