The February result season has mercifully come to an end as March begins but the groundswell of ex-dividends that built in the last week hits a peak next week, before continuing through the month. This implies each morning the ASX200 will open with a handicap before making its move for the day, suggesting gains for the index will be that little bit harder to achieve.
The reverse of this issue occurs when dividends are actually paid to shareholders, who (for the most part) then reinvest in the market. But that’s a little while off yet.
On the economic front, next week is GDP week. Ahead of the result on Wednesday we’ll see December quarter numbers for company profits and inventories on Monday and the current account on Tuesday, which includes the terms of trade.
Monthly data due next week include building approvals, the services and construction PMIs, retail sales and the trade balance. The RBA meets on Tuesday and the RBA governor speaks on Wednesday.
The ECB holds a policy meeting on Thursday.
In the US, scheduled and catch-up data releases include new home sales, factory orders, trade, the Fed Beige Book, and the ADP private sector and non-farm payrolls jobs reports.
