The Week Ahead: A Matter Of Minutes

This story features MACQUARIE GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: MQG

By Greg Peel

As we sit poised at significant levels in both the US indices and the ASX 200 there is not exactly a wealth of data to tip the balance this week. However, as both the US and Australian central banks release the minutes of their last monetary policy meetings this week there will still be close scrutiny, looking for those subtle hints.

The Fed last cut its cash rate by 25bps to 2% and gave a vague indication that it may remain on hold now for the time being. It was not, however, an emphatic statement so the lengthier minutes may hold further clues. With a neutral-to-inflationary budget since having been brought down in Australia the RBA’s thoughts at its last meeting, in which it kept the cash rate at 7.25%, may also provide further clues as to whether we might still see 7.5%.

Australia begins with April merchandise imports on Monday, followed by the RBA minutes on Tuesday. On Wednesday we learn the Westpac-Melbourne Institute consumer sentiment measure for May – a figure that caused some concern last month – and April new vehicle sales. Thursday is consumer inflation expectations for May, and that’s it.

In the US, Monday brings leading economic indicators for April, and Tuesday the April PPI. The Fed minutes are released on Wednesday, Thursday sees March house prices, and Friday wraps up with April existing home sales.

Elsewhere Japan makes a rate decision on Tuesday and releases the minutes of that meeting on Thursday, while the Bank of England releases the minutes of its last policy meeting on Wednesday, and learns its first quarter GDP on Friday.

In the local share market, highlights include profit results from Lion Nathan ((LNN)), Macquarie Group ((MQG)) and James Hardie ((JHX)). Details can be found in the FNArena calendar.

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