Events that marked the week:
From Australia, on Tuesday, NAB Business Confidence figures were released. Financial market volatility has persisted, raising the risk of an adverse impact on Australian business that could threaten the recovery seen in the non-mining economy. However, today’s NAB Monthly Business Survey suggests that business confidence – where the negative effects from financial markets are likely to be felt first – have held up reasonably well in the face of this uncertainty. The confidence index remained unchanged at +2 points in January.
On Wednesday, from Australia, Westpac Consumer Sentiment figures were released.
The Westpac Melbourne Institute Index of Consumer Sentiment rose by 4.2% in February to 101.3 from 97.3 in January. The Index has now recovered all the ground it lost in January when it fell by 3.5%. The Index has now returned to a level (above 100) where optimists outnumber pessimists. This is good news in that there have only been five months over the last two years when we have had optimists in the ascendency. While the plunge in the oil price is disturbing from a market perspective, households are now benefitting from lower petrol prices. Since the survey in January “average pump price” has fallen by 8.5% providing households with a decent boost to disposable incomes.
Friday brought Australian Home Loans data.The trend estimate for the total value of dwelling finance commitments excluding alterations and additions was flat. Owner occupied housing commitments rose 1.3% while investment housing commitments fell 2.4%. In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 0.8%.In trend terms, the number of commitments for owner occupied housing finance rose 1.1% in December 2015. In seasonally adjusted terms it rose by 2.6%. Analysts were predicting 2.9% increase.
This week markets will be looking at:
China's Trade Balance (Monday)
Monetary Policy Meeting Minutes (Tuesday 1:30)
Employment Change/Unemployment Rate (Thursday 1:30)
China's CPI/PPI (Thursday 2:30)
