Whimper before the bang
Share markets are off to a modest start this week ahead of a packed economic calendar over the rest of the week. Despite surging European shares, a mid-session sentiment reversal in the US on Friday night could see enthusiasm wane over the trading day. Gains for oil may see energy stocks in the spotlight, but falling metals prices mean commodity influences are a mixed bag.
Investor attention will turn to the macro this week. Building approvals and retail sales both have potential to move the local bourse. However, the big news will flow from China and the USA. Concerns about economic growth in China make this Thursday’s official and private PMIs crucial. The manufacturing and non-manufacturing data will drop side by side, offering a snapshot of where China stands right now. On Friday US non-farm payrolls will speak directly to the potential for an October rate rise, and cap a week where inflation, housing, manufacturing, mortgage and ISM data is released.
The busy week ahead may dull investor appetites today. Futures are pointing to a small fall at the open, but stronger than expected US GDP and interest in oil and gas shares could see the boards turn green. The Australian 200 index has traded sideways for five weeks. This week may provide the catalyst for a break out from the current narrow range, but today is not the day.
Frequently Asked Questions about this Article…
Share markets have started modestly this week, with a packed economic calendar ahead. Despite strong European shares, a sentiment reversal in the US could dampen enthusiasm.
Energy stocks may be in the spotlight due to gains in oil prices, although the overall influence of commodities is mixed due to falling metals prices.
Investors should pay attention to building approvals, retail sales, and significant data releases from China and the USA, including PMIs and US non-farm payrolls.
China's PMIs are crucial as they provide a snapshot of the country's economic growth, which is a significant concern for investors this week.
US non-farm payrolls could influence the potential for an October rate rise, making it a key data point for investors to watch this week.
The Australian 200 index has been trading sideways for five weeks, and this week may provide the catalyst for a breakout from the current narrow range.
Building approvals and retail sales have the potential to move the local bourse, alongside broader economic data from China and the USA.
Stronger than expected US GDP could lead to increased interest in oil and gas shares, potentially turning the markets green despite a small fall at the open.
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