Next Week At A Glance

This story features WESTPAC BANKING CORPORATION, and other companies. For more info SHARE ANALYSIS: WBC

By Greg Peel

Another Friday, and another weekend ahead of us of deliberations in Europe that have significant ramifications for the world as we know it. Having said enough on the subject to date, let me just say that I can't see European leaders emerging tonight (or probably into tomorrow morning Sydney time) with their hands in the air in resigned frustration of a stalemate being reached. Something positive will be said, but market reaction will depend on whether it is positive enough to match the hope built up in prices going into this EU summit, irrespective of last night's weakness.

If not, we go down.

Before we get there we have today's “data dump” from China, featuring November inflation readings as well as retail sales and industrial production. Further signs of easing inflation in China will hearten markets on expectations this will be met with further easing on monetary policy from Beijing, all of which plays into the all-encompassing European issue.

Next week's critical development will be the scheduled Fed meeting on Tuesday night. One presumes Fed policy will be to a great extent determined by what happens between now and then. An insufficient result in Brussels may yet usher in QE3. All we can do is speculate at this point.

Next week the US will also see business inventories, retail sales, industrial production, the Empire State and Philly Fed manufacturing indices, and the inflation numbers – important numbers all. Is modest US growth hanging in there or is it stumbling again as Europe drags down the world?

In Australia we will see housing finance and investment lending, September quarter dwelling starts, and the monthly NAB business confidence and Westpac consumer confidence surveys. The latter will be particularly relevant for the retail sector heading into its most important month of the year.

There will be handful of AGMs next week, most notably Westpac ((WBC)) and National Bank ((NAB)).

Fingers crossed.

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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