Weekly Reports | Feb 22 2013
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.
By Greg Peel
The local earnings season will continue next week with another deluge of results. Suddenly the gloss has gone off, nevertheless, such that “surprises” will be evaluated under a possible pullback cloud now rather than under the brilliant sunshine of unfettered enthusiasm. The macro may once more crowd out the micro.
To that end, Italy goes to the polls on Sunday in a general election that lasts into Monday. It may thus not be until midweek that a feared non-result begins to emerge. Or maybe the Italians will surprise us all, but strong support for Berlusconi will likely drive a wedge between the legitimate candidates and lead to a typical Italian government mish-mash of tenuously aligned coalition partners. If the world is in a pullback mood, this would be fuel.
Next Friday is March 1, D-day for the US “sequester”. Given the fizzer that was the Fiscal Cliff markets are more relaxed about the notion of sudden enforced spending cuts, not so much trusting Congress to reach a resolution but rather trusting an agreement from both sides to push the deadline further out in time, as per usual, if resolution cannot be reached. But we’ll have to see. Again – another potential pullback impetus.
March 1 will also be global manufacturing PMI day but over the week the US will see releases for house prices, new home sales, pending home sales, vehicle sales, consumer confidence, personal spending, construction spending and durable goods orders. On Thursday, the December quarter GDP result will be revised.
Australia has begun to count down towards the March 6 release of our own December quarter GDP, with next week bringing quarterly numbers for construction work, capital expenditure and private sector credit.
India will report its December quarter GDP on Thursday.
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