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 Chinese stock market will clearly be in focus again today when it opens late morning, as the market waits to see whether yesterday’s six-year record rally was just a blip or signals the beginning of the end of the Chinese rout.

Next week China will remain very much in focus as Beijing releases its June quarter GDP result. Wednesday’s release will coincide with a month of June data dump of industrial production, retail sales and fixed asset investment numbers. Prior to that, Monday will see China’s June trade numbers.

Next week will also, supposedly, see Greece’s fate determined one way or the other, although I have a disquieting feeling I’ve seen this movie before. Tsipras has submitted his latest proposal for a three-year bailout which is believed to include some further concessions to Greece’s creditors, although given the referendum result surely the proposal cannot represent anything like a capitulation.

The Greek parliament will vote on the proposal pre-emptively tonight, removing that potential obstacle as European leaders and officials mull over the details ahead of a summit meeting on Sunday. It appears as though the Germans may now be prepared to offer some form of debt relief, possibly in the form of a “haircut”, although the IMF and ECB have ruled out such nonsense with regard their own specific debts.

Greece’s debt to Germany is not actually due until 2023.

While all of that’s going on, a raft of US economic data releases next week will ensure we don’t forget about the other important issue of the day – just when the Fed will make its first rate hike.

Next week the US sees numbers for retail sales, inventories, industrial production, inflation, consumer sentiment, housing sentiment and housing starts, along with the Empire State and Philly Fed activity indices and the Fed Beige Book.

Locally we’ll see NAB’s monthly business and Westpac’s monthly consumer confidence surveys.

On the local stock front, the resource sector quarterly production report season hots up towards the end of the week with reports from Iluka Resources ((ILU)), Rio Tinto ((RIO)), Whitehaven Coal ((WHC)) and Santos ((STO)).
 

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