Weekly Reports | Feb 27 2015
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
The big focus next week will be on the local market. With the results season done and dusted, all but for a couple of tardy stragglers, attention returns to the macro from the micro and to the economy in particular (notwithstanding any trivial distractions from Canberra).
Will the RBA cut on Tuesday? Most economists seem to think so. The minutes of the February meeting did not support another immediate cut but since then we’ve seen unemployment hit 6.4% and capex numbers disappoint, and the Aussie is no lower than it was ahead of the February rate cut announcement. Wage growth is also anaemic, keeping a lid on inflation.
If not March then perhaps April, but if we don’t get a cut next week a rug will likely be pulled out from under the local stock market, at least in the short term.
The day after the RBA meeting, we’ll see the December quarter GDP result. But if the RBA has already cut, it will seem like very old news. It will nevertheless be interesting to hear what Prime Minister Turnbull thinks.
Next week is a new month so we’ll see the usual round of manufacturing and service sector PMIs from across the globe. Locally we’ll see monthly building approvals, retail sales and trade data, while the US will be focused on the private sector and non-farm payroll jobs reports, vis a vis Fed policy.
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