Next Week At A Glance

This story features NATIONAL AUSTRALIA BANK LIMITED. For more info SHARE ANALYSIS: NAB

By Greg Peel

Tonight in the US sees earnings reports from Dow components Bank of America and General Electric. BofA will be under pressure to post a good result in the wake of rival JP Morgan's all-round positive surprise earlier this week. Given the extent of GE's diverse businesses it is considered a bit of an economic barometer. Tonight also sees US housing starts and consumer confidence.

It is now likely we will see Greece sticking its hand out to the EU early next week in the first trigger of the stand-by EU-IMF rescue package. There is US$30bn in relatively cheap funding Greece can draw on from the EU before it has to turn to the IMF, which will impose strict economic measures and no doubt incite the wrath of the Greek people. Greece has called EU and IMF officials to Athens on Monday as its sovereign bonds continue to be sold down by the market.

The list of post-GFC monetary policy tighteners now includes Australia, Israel, Norway, India and Singapore with China possibly not far off. The US is holding fast, but next week sees a rate decision from the Bank of Canada. Given Canada's by far biggest trading partner is its southern neighbour, where goes the US economy so goes Canada's to a great extent. But the BoC was apparently very close to raising rates last month so interim commodity price rises may push it over the line. The Canadian dollar is a component of the US dollar index.

Next week's economic data in the US includes the leading economic indicators, existing home sales, the FHFA house price index and the monthly PPI. Friday sees new home sales along with durable goods so it's an important week for the housing sector.

There will nevertheless be a flood of quarterly earnings reports to rival economic news.

There's not much on the Australian economic front next week. The minutes of the last RBA meeting are released, Westpac provides its leading economic indicators, we learn monthly vehicle sales and the first quarter import/export price index (important for inflation). The RBA governor will speak on Friday.

Elsewhere in the world, the UK will release unemployment data on Wednesday and its first estimate of first quarter GDP on Friday – both important considerations for voters heading into the May 6 election. Once again the polls are slipping back towards predicting a hung parliament, which would not be positive for the pound.

On the local stock front AGM season is in full swing and more resource sector production reports will be forthcoming from a few of the big players. The ACCC is scheduled to rule on National Bank's ((NAB)) bid for AXA-AP ((AXA)) on Thursday.

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, AGM dates and times and other relevant information, please refer to the FNArena Calendar.

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