In the US, the focus is likely to be on Fed Chair Janet Yellen’s address to the Jackson Hole symposium for any clues on the interest rate outlook if she even decides to discuss current monetary policy. The likelihood is that if she does she will reiterate that the process of raising interest rates to more normal levels is likely to remain cautious and gradual but leave the impression that the Fed is on track to raise interest rates again this year. On the data front in the US expect the manufacturing conditions PMI (Tuesday) to remain around 52.9, a fall back in new home sales (Tuesday) and in existing home sales (Wednesday), a further rise in home prices (Wednesday), a rise in core durable goods orders (Thursday) and a slight further downgrade to June quarter GDP growth (Friday) to 1% annualised from 1.2%.
In the Eurozone, business conditions PMIs will be released (Tuesday) but are expected to remain around an okay 53.
Japanese consumer price data (Friday) is expected to show continued deflation of around -0.4% year on year at a headline level and core inflation of just 0.4%yoy.
In Australia, expect June quarter construction data (Wednesday) to show continued weakness in mining related investment but strength in dwelling construction. Skilled vacancy data for July will also be released.
The Australian June quarter earnings reporting season will see its biggest week with 87 major companies due to report in the week ahead including Fortescue, Oil Search, Westfield and Woolworths.