Next Week At A Glance

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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 up and down US market may have another cause to be volatile tonight when the April jobs numbers are released. But if it’s a shocker, the chance of the Fed increasing QE infinity will no doubt keep a floor under stock prices. Tonight also sees the US service sector PMI.

Next week is a quiet one on the US economic calendar, with chain store sales the most notable release.

In Australia, Tuesday sees an RBA rate decision and the jury is out. Given the weakness of recent data, such as building approvals and manufacturing (service sector PMI due today) and the benign read on first quarter inflation, there are plenty of economists baying for a rate cut to provide some relief against the strong Aussie. Mind you, as long as Australian bond yields remain much higher than global yields (note the ECB cut last night), there’s little to encourage the Aussie to fall much. Rate cuts to date have failed to budge the currency and ever weaker commodity prices are not having any real impact either.

On the flipside, Australian house prices are on the move up again. CPI inflation may be contained but asset prices, including stocks, are not. The RBA may not wish to risk an asset price bubble.

The ANZ job ads series is out next week along with retail sales, first quarter house prices, the trade balance and the April jobs numbers.

China will reveal its trade balance and inflation data, and HSBC will release its Chinese service sector PMI. Japan is on holiday on Monday before releasing its trade balance on Friday.

Friday sees the first day of a meeting of G8 finance ministers and central bankers.

On the local stock front, Orica ((ORI)) will release interim earnings on Monday and National Bank ((NAB)) will do the same on Thursday. The AGM season rolls on, with Rio Tinto ((RIO)) and Santos ((STO)) among the highlights next week.

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