Weekly Reports | Mar 15 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
At the close of trade today, the S&P/ASX 200 and FTSE Australian stock indices will be rebalanced and Vanguard will shift its Australian equities ETF to a FTSE index-based portfolio from a MSCI index-based portfolio. The implication is that many stocks will be promoted/relegated/reweighted, and hence index-tracking funds and Vanguard will need to buy/sell stocks and adjust stock weightings accordingly. The stocks involved are listed in Treasure Chest: Extensive ASX Index Rebalance.
On Wall Street tonight it’s a “quadruple witching” options expiry which may just provide the impetus for the S&P 500 to breach the all-time high. As to whether the impetus to continue towards a record up-day streak remains post expiry is not so clear.
Next week is a busy economic data week across the globe. For the US the feature is on housing data, with the housing sentiment index, housing starts, existing home sales and FHFA house price index due. On Wednesday night the Fed will provide a monetary policy statement and will provide a quarterly update of economic forecasts, and Ben Bernanke will hold a quarterly press conference.
We are reminded that last month Wall Street tanked on the release of the Fed statement, which appeared to imply a QE exit was close. Bernanke then poured cold water on that idea, insisting QE was here to stay for the time being. It will be interesting to see how next week’s statement is interpreted.
Thursday is “flash” day, with estimates due for the March manufacturing PMIs of China (HSBC), the eurozone and US. The eurozone will also see results of the influential ZEW investor sentiment survey and German IFO business sentiment survey.
The minutes of the RBA’s last policy meeting will be released on Tuesday which will be pored over by the markets looking for any further confirmation of no intention to cut rates. Thursday sees the March quarter index futures and options expiry on the ASX.
New Zealand’s December quarter GDP result will be released on Thursday.
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