Next Week At A Glance

This story features COCHLEAR LIMITED, and other companies. For more info SHARE ANALYSIS: COH

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

Suddenly correction talk is back in vogue on Wall Street. We’ve seen this movie before, several times this year, and in each case new highs have followed. Everyone is looking for a correction, most everyone wants a correction, all of which suggests a correction of any magnitude is unlikely. A pullback, yes, but a full scale correction will be difficult to achieve when so much money is waiting for exactly that opportunity to get in.

Tonight in the US sees the July jobs data, and Wall Street is on edge. With a Fed rate rise in the offing, an above-expectation result (consensus around 230k) may well exacerbate the sell-off given employment strength equals economic strength, equals rate rise.

Tonight also sees the round of global manufacturing PMI results continuing. Today we’ve had or will have Australian, Japanese and Chinese numbers (official and HSBC) and tonight we see the eurozone UK and US. The official Chinese services PMI is due on Sunday.

Tonight in the US also brings consumer sentiment, construction spending and personal income and spending. Income growth is suddenly very much in focus vis a vis US inflation fears.

Moving into next week, Tuesday brings the global round of service sector PMIs. It’s a quieter economic week in the US with factory orders, chain store sales, the trade balance and June quarter productivity the highlights.

China will release inflation and trade data on Friday next week.

The ECB and Bank of England hold policy meetings on Thursday and the Bank of Japan follows on Friday. All three offer a chance of policy adjustments.

It’s a busy economic week in Australia. The RBA meets on Tuesday but no change is expected.

Data during the week include ANZ jobs ads, retail sales, the trade balance, the jobs numbers, housing finance and investment lending as well as the manufacturing, services and construction PMIs.

On the local stock front, we’ve seen the last of the major resource sector production reports but next week earnings results start to roll in more steadily. Highlights next week will include reports from Cochlear ((COH)), Downer EDI ((DOW)), Transurban ((TCL)), Rio Tinto ((RIO)), Tabcorp ((TAH)), News Corp ((NWS)) and REA Group ((REA)).
 

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