Next Week At A Glance

This story features FORTESCUE LIMITED, and other companies. For more info SHARE ANALYSIS: FMG

For a more comprehensive preview of next week's events, please refer to "The Monday Report", published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.

By Greg Peel

Next Wednesday sees the release of Australia’s June quarter CPI. The minutes of the last RBA meeting released this week told us that having tried so hard to talk the exchange rate down, the RBA is now worried a lower Aussie could threaten to push up inflation. On that basis the market began to wind back its previously committed August rate cut expectations.

The reality is that while forex markets move in a heartbeat, it takes a long time for exchange rate effects to flow through to end-prices. Thus the June quarter CPI report will show little, if any, currency impact. Of course this won’t stop markets responding as if it does.

The CPI is the main data highlight for Australia next week, with market attention otherwise focused on ongoing resource sector production reports. There are several due next week, including from Fortescue Metals ((FMG)), Oil Search ((OSH)), Newcrest Mining ((NCM)) and OZ Minerals ((OZL)).

The US earnings season steps into a higher gear next week, after General Electric tonight. Next week’s reporters feature several Dow stocks including Boeing, Caterpillar and Ford while other biggies stepping up include Apple, Facebook, UPS, Visa and GM.

On the US economic front we’ll see the Chicago Fed index, house prices, new and existing home sales and durable goods. On Wednesday night we’ll see a flash reading of the US July manufacturing PMI and an equivalent eurozone number will also be released.

Beforehand, the HSBC flash PMI for China is due. The HSBC numbers are the only indicator we have for Chinese manufacturing for the time being given Beijing has decided to suspend its own publication.

On Thursday the UK will release its first estimate of June quarter GDP while the German IFO business sentiment index will also be closely watched.

This Sunday, the Japanese upper house election will be held which is expected to deliver a two-house majority for Abe, leaving him free to pursue his stimulus plans.

Rudi will be on hand at the Trading & Investing Expo in Sydney at Darling Harbour today and Rudi and I will both be in attendance tomorrow.

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