Welcome to the Investors Trading Academy economic calendar of the week. Each week our news analysts review the upcoming economic events that you should be monitoring during the week.
This week is, hopefully, the first in a month when the Monday open is not dominated by Greece. With a deal done and passed by national parliaments, markets have rallied. Now the focus can shift fully to US earnings season, which is now in full swing. So far there has been a good tone to numbers from the major banks, Netflix and Google, which has helped US indices to push higher.
Monday should see Greek banks reopen as the increased ELA from the ECB will keep money flowing. The emergency bridge loan from the European Commission should help Greece make the July 20th payment to the ECB. With the calendar being so light the Reserve Bank of New Zealand should get added attention. Also housing data in the US will take center stage.
On Tuesday the Reserve Bank of Australia releases minutes of the last board meeting, held on July 7. At this meeting Reserve Bank Board members elected to both leave interest rate settings unchanged as well as the monetary policy stance. The RBA has a “neutral” stance, meaning that the next move in rates could go either way. The minutes could give some indication as to what to expect as the next meeting.
On Wednesday the Bank of England minutes will likely be one of the key events of the week – governor Mark Carney has been rather vocal of late about impending rate hikes, and we will see in the minutes whether this view is shared by others on the Monetary Policy Committee. PMIs at the end of the week will also be handy for gauging the health of the global economy.
In the US data on existing home sales are issued. Economists estimate that sales lifted by around 1 per cent in June to a 5.4 million annual rate after a solid 5.1 per cent gain in May. The weekly data on mortgage activity is also issued — new lending and refinancing data.
Depending on where you are located late on Wednesday or very early on Thursday the Reserve Bank of New Zealand will hold its meeting. When the RBNZ meets it is widely expected to cut the policy rate 25bp to 3.0%. This comes on the heels of the June meeting where the RBNZ surprised the market with a 25bp cut.
On Thursday, the National Activity index is issued for the month of June as well as the June leading index and July survey of activity by the Kansas City Federal Reserve. Economists tip a 0.1 per cent lift in the leading index after a 0.7 per cent gain in May.
And on Friday in the US, the June data on new home sales is issued. After a solid 2.2 per cent lift in May, new home sales likely plateaued at a 543,000 annual rate in June. The ‘flash’ July readings on manufacturing activity in the US, Europe and China are released.
By Barry Norman, Investors Trading Academy