Next Week At A Glance

This story features OZ MINERALS LIMITED, and other companies. For more info SHARE ANALYSIS: OZL

By Greg Peel

Enough said about QE2. Wall Street, by estimation, has factored in US$500bn of fresh QE beginning in November either as one announced lump or in tranches. This has driven stock markets higher in September and into October.

One can only assume confirmation would provide limited upside therefore, and maybe even a bout of “sell the fact”, while disappointment would bring an exodus. However, in the interim there is the small matter of the US third quarter earnings season. Expectations appear to be improving as we enter the season and with a likely QE2 safety net in place, there is still further room for stock market upside if bullish expectations prove accurate.

Tonight in the US it's the turn of General Electric (Dow) to report, and with a finger in many pies GE is seen as a general economic bellwether. Next week will feature big banks, with Bank of America (Dow) and Citigroup reporting along with Dow components Amex, Coke and Boeing. Financials are the most substantial sector in the S&P 500.

Tonight in the US also sees retail sales and the all important CPI – all important now that the Fed is targeting inflation with QE2. Business inventories, the Empire index and UMich index round out the session.

Next week begins in the US with industrial production and the housing market sentiment index while throughout the week we'll see housing starts, the Fed Beige Book, the Philly index and leading economic indicators.

All eyes will turn to China next Thursday as not only will the monthly round of data be released – CPI, PPI, retail sales, industrial production – but the September quarter GDP will also be revealed. Yes – it takes Beijing only three weeks to calculate what everyone else takes three months to calculate which is why the world assumes the results are set to a target.

In Australia, the minutes of the October RBA meeting will be released next week and economists will scour for clues on a November rate rise. Thereafter Westpac will publish its leading economic index and CBA will offer third quarter housing affordability.

On the stock front, we'll be into about the second busiest week of AGMs (just wait for the following week) and amidst the melee more resource sector production reports will be released, including those of OZ ((OZL)), BHP ((BHP)) and Woodside ((WPL)). The Masterchef Network ((TEN)) will report its full-year result.

On Tuesday night the Bank of Canada will make a rate decision and a hike is on the cards given the Loonie has regained parity with the greenback. More downward pressure on the greenback will provide more impetus for Aussie parity if we're not already there by then.

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.

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