Weekly Reports | Jul 04 2014
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
Wall Street is closed tonight for the Independence Day long weekend and holiday-makers will no doubt be in a jolly mood after a solid week of gains for the stock market, weather permitting. The question going into next week, however, will be one of how long can this last before the Fed is forced to put up rates.
And what will happen if it does.
Next week sees the minutes of the last Fed meeting released on the Wednesday night and while minutes are always ostensibly “old news”, the focus of attention will be on whether or not support for Janet Yellen’s persistently dovish stance is waning among some members of the FOMC.
Next week will also see US data releases for chain store sales and wholesale trade along with the Treasury budget, which means it’s a quiet week economically. Anticipation will start to build with regard June quarter earnings results, nevertheless, given Alcoa will report on Tuesday to unofficially kick off the season. The banks start to report late in the week and then the floodgates begin to open the week after. At present consensus is for around 6% net quarterly earnings growth.
China will release its June inflation numbers and trade balance next week.
It’s a busy week economically for Australia, including releases for ANZ job ads, the TD Securities inflation gauge, the construction PMI, NAB business confidence, Westpac consumer confidence, unemployment, housing finance and investment lending. We might anticipate a rollercoaster ride for the Aussie dollar, in the wake of Glenn Stevens’ speech, if these numbers paint a mixed picture.
There’s very little scheduled on the corporate front next week as we move through the typical disclosure vacuum between EOFY and the August result season. We shall shortly start to see the next quarterly round of resource sector production reports, nevertheless.
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