Weekly Reports | Aug 23 2013
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
It’s been difficult not to feel all week that Wall Street has been shaping for a big leg down, rather than a bit of wobbly weakness, on a final tapering capitulation. Yet last night’s strength in the S&P on the back of solid US and global data underscores the fact the buyers are ready and willing, and they are those happy to suggest tapering only means a stronger US economy.
The question is: who will win? If the Fed finally resolves the yes/no question in September we could still see a sell-off, but only as far as the buyers are game to let it run before they break ranks and charge.
Next week in the US sees data on durable goods, consumer confidence, pending home sales, personal income and spending, the Case-Shiller house price index and the Richmond Fed manufacturing index. On Thursday the first estimate of June quarter GDP will be revised.
Peripheral emerging markets will also again be in the spotlight next week having tanked this week on tapering concerns. Less QE – less EM investment. India reports its June quarter GDP on Friday, and on Sunday next Beijing will release its official manufacturing PMI for August.
The release of June quarter construction work done and capex in Australia next week signal the beginning of the quarterly data flow leading up to the GDP result on September 4. Meanwhile the focus will remain firmly on the last frenetic week of the season for index stock profit results. There will still be some laggards reporting in September, along with a relentless flow of small cap reports, and a few hundred penny dreadful miners will post numbers. But realistically the real game will come to a close.
Hallelujah.
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