Weekly Reports | Aug 28 2015
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
Although the ASX200 is doing a bit of a Friday fade from an early burst as I write, no doubt ahead of exhausted fund managers and brokers heading off for a well-earned streak and bottle of red, we can say for now that the index has lifted back towards post Chinese devaluation levels and overcome the panic of earlier in the week.
As to whether the volatility is now over, and the market can reset to lower Chinese growth expectations in an orderly fashion from here, is still uncertain. Much will depend on Wall Street settling down, which is hasn’t yet, ahead of next month’s Fed meeting.
And more Chinese data loom large next week, if any of it can be believed. On Tuesday Beijing will report its official August manufacturing and service sector PMI’s and Caixin will confirm its manufacturing number, with services to follow on Thursday.
PMIs will also be reported across the globe next week.
If indeed the Fed really is still data-dependent at this eleventh hour, then next week’s US jobs data will be of critical importance. There’ll also be PMI, construction spending, factory orders, vehicle sales, chain store sales and trade numbers to contend with, along with the Fed Beige Book.
It is a very big week for Australia economically. The local results season effectively ends with a bang today, although there are a few tardy names to straggle in early next week.
On a June quarter basis, we’ll see company profits and inventories and the current account, including the terms of trade, ahead of Wednesday’s GDP result.
On a monthly basis, we’ll see PMIs, building approvals, retail sales and the trade balance.
And to top it all off, the RBA will meet on Tuesday.
I should be saying the micro emphasis of result season should now give way to the macro influence of economic data, but given global macro themes and volatility have dominated these past two weeks, the emphasis won’t shift much at all.
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