Weekly Reports | Oct 23 2009
A brief look at important company events and economic data releases next week.
With China having announced an 8.9% third quarter GDP close enough to expectation, attention now turns to the UK tonight on the release of its equivalent number. On Thursday next week, the US third quarter GDP will be released.
The US earnings season will also continue in earnest next week, and investors will be hoping for a continuation of net positive results to date. Could the GDP result spoil the party?
Next week also sees another round of US Treasury auctions. Total government debt on issue is again another record, but this time economists were quite surprised when the formidable total was announced. The Treasury will issue US$7bn of five-year inflation-adjusted bonds on Monday night, US$44bn of two-year notes on Tuesday, US$41bn of fives on Wednesday and US$31bn of sevens on Thursday.
Nervousness surrounding the extent of the auction total, and the ongoing desire for the rest of the world to fund the US deficits, has seen US bond yields tick up this week. The ten-year rate is now back above 3.4%.
The US will also learn both the official and the Case-Shiller house price indices next week, both the latest official and Michigan Uni consumer confidence numbers, durable goods orders, new home sales, personal consumption expenditure, and the Chicago purchasing managers’ index.
It’s inflation week in Australia, with both the PPI and CPI due for release. These will make for interesting reading given suggestions the RBA might even spoil Cup Day with a full 50 basis point rate increase. The indicative number to look out for here is not the headline, nor the core, but the RBA’s trimmed mean.
Australia also learns new home sales along with private sector credit numbers next week.
In Japan, the focus will be on the release of September industrial production, and the Bank of Japan’s rate decision due on Friday. There is no expectation that the BoJ will move from 0.1% at this stage.
On the local stock market front, Australia sees the biggest week of the year for Annual General Meetings next week. Among the get-togethers will also be some quarterly production reports from resource sector stragglers.
For a more comprehensive preview of next week’s events, please refer to “The Week Ahead”, published each Monday morning.
For all economic data release dates, AGM dates and times and other relevant information, please refer to the FNArena Calendar.
