Next Week At A Glance

This story features ANZ GROUP HOLDINGS LIMITED. For more info SHARE ANALYSIS: ANZ

 By Greg Peel

As we countdown to Christmas, next week is basically the last week of Australian economic data for the year. But it’s an important week nevertheless, as it will include the release of Australia’s third quarter GDP on Wednesday.

While the US, Europe and Japan prefer to make early estimates of GDP and then revise them twice, often arriving at very different results, Australia holds off until the data are assured. That’s why Australia’s release seems late in the game, but given the US will make its final third quarter revision the following week, it’s really not late at all. Ahead of next week’s results is today’s raft of monthly Chinese data, including industrial production, investment and retail sales. Another strong round of data is expected, which won’t impact on Australian GDP growth past but will bode well for GDP growth ahead.

Another important event on the Australian calendar next week will be the release of the long-awaited Cooper Review of the superannuation industry on Monday. Uncertainty over regulatory changes has kept a lid on listed wealth management stocks these last few months, and next week all will be revealed.

In Australia next week we will also receive the minutes of the last RBA meeting, and learn third quarter dwelling starts, November new home sales, and the TD Securities monthly inflation gauge.

It’s no quiet time in the US next week. On deck will be industrial production, the Empire State manufacturing index, producer price index, consumer price index, Treasury international capital flows, leading economic indicators, and the Philly Fed activity index. And Wednesday sees a Fed monetary policy meeting announcement, in which Ben Bernanke will reiterate that US rates will remain “exceptionally low for an extended period”. Traders will be looking closely for any other possible concessions on quantitative easing policies. Friday in the US is “quadruple witching”, in which stock, index, stock future and index future options expire in unison.

The Bank of Japan will also make a rate decision on Friday, but given the BoJ is now printing yen in order to devalue the currency in the face of a falling US dollar, no change will be made to the current 0.1% cash rate.

On the local stock front, there will be a trickle of AGMs next week, including ANZ Bank ((ANZ)) on Friday.

For a more comprehensive preview of next week’s events, please refer to “The Week Ahead”, published each Monday morning. For all economic data release dates, AGM dates and times and other relevant information, please refer to the FNArena Calendar.

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