The fallout from Trump’s trade war escalation (and an earlier move from China) on Friday plus the President’s insulting of Fed chair Jerome Powell, will dominate events and data over the coming week.
The volatile markets will overshadow the Group of Seven meetings in France today through Wednesday. Markets will be watching to see what the next atrocity President Trump comes up with after his efforts last Friday.
In Australia, the final week of the June 30 earnings season wraps up this week. There’s also the start of the lead-up data releases ahead of the June quarter GDP figures next week.
The main data from the ABS will be the June quarter construction and business investment data which will both provide input into June quarter GDP growth expectations Wednesday week.
The AMP’s Chief Economist, Shane Oliver expects the construction data on Wednesday to have remained weak with a further fall in dwelling construction but a slight rise in other construction.
Dr. Oliver expects the private investment CAPEX data on Thursday to show a modest rise.
“Business investment intentions to be released with the CAPEX data are likely to show an ongoing gradual improvement in the investment outlook.
He also says that we could see a slight fall in building approvals for July but continued soft credit growth with both to be released on Friday.
The Australian June half earnings report season ends this week with 65 major companies reporting (See separate story) with the likes of Fortescue, Boral, Wesfarmers (Tuesday), OZ Minerals, Ramsay Health, Woolworths and Harvey Norman.
In the US data on durable goods orders, house prices and consumer confidence will be issued, along with the key personal consumption and inflation data on Friday (that’s the series the Fed watches closely).
Eurozone economic data due Friday will update unemployment and core inflation for August staying weak at 0.9%.
Brexit tooing and froing will continue in the UK.
Japanese data due Friday will update the labour market and industrial production.