With last week ending amid more records being smashed in the US, the Australian share market is also poised to extend its strong run of late. While US futures have opened lower this morning, ASX futures suggest the local market will start on the front foot this week, with the All Ordinaries already trading at a record high. A number of market stalwarts will also report both locally and in the US.
Economic calendar and news
Preliminary figures for March’s retail sales will be released on Wednesday, with the data expected to show a modest uptick as the JobKeeper program came to a close. There will also be ‘flash’ interim readings for manufacturing and services activity throughout April thus far.
Meanwhile, the aforementioned minutes from the most-recent RBA meeting will be published tomorrow. WIth no change in monetary policy expected for some time, the emphasis is likely to be on the tone of the central bank’s views towards bond yields, the Aussie dollar and its QE program.
Overseas, there will be limited economic news out of the US, with the same flash data for manufacturing and services activity on the agenda, but otherwise, home sales and jobless claims.
The European Central Bank will also convene for its latest interest rate decision, although no changes are anticipated, with President Christine Lagarde speaking later in what will be a closely-watched address.
Household American names Netflix (NASDAQ: NFLX), Intel (NASDAQ: INTC) and Coca-Cola (NYSE: KO) will provide a barometer as to how Wall Street is faring a year on from the onset of the pandemic, with each of the consumer-facing names also representing a test of the American consumer.
United Airlines (NASDAQ: UAL) and American Airlines (NASDAQ: AAL) will also follow suit. Their reports will be hot on the heels of Delta Airlines, which last week announced that it finally returned to a positive cash flow position last month as travel confidence builds up.
Other offshore names on watch this week as they report include IBM (NYSE: IBM), Johnson & Johnson (NYSE: JNJ), Procter & Gamble (NYSE: PG), Lockheed Martin (NYSE: LMT), Philip Morris (NYSE: PM), Credit Suisse (NYSE: CS) and American Express (NYSE: AXP).
Meanwhile, ASX names to keep an eye on this week include iron ore majors BHP (ASX: BHP) and Rio Tinto (ASX: RIO), each of which will detail quarterly production updates over the following two days. With the price of iron ore firming through much of the quarter, and still elevated in April thus far, expectations are high for the duo to report massive results.
Another high-profile blue-chip name set to report quarterly results is Woodside Petroleum (ASX: WPL), with the company pencilled in to announce its production figures on Thursday. Oil prices have performed well throughout the first quarter of the year, although the rise in WPL shares has seemingly lagged the oil rally. Santos (ASX: STO) will also publish its figures on the same day, making for a key juncture for the energy sector this week.
Alongside the above will be quarterly reports from Lynas Rare Earths (ASX: LYC), Galaxy Resources (ASX: GXY), Evolution Mining (ASX: EVN) and OZ Minerals (ASX: OZL), rounding out a busy week for resources stocks from a wide range of sectors.
In terms of momentum trades, TPG (ASX: TPG) and AGL (ASX: AGL) hit new yearly lows last week, as each business deals with prevailing negative sentiment. That contrasts consumer staple stocks in Woolworths (ASX: WOW) and Metcash (ASX: MTS), as well as tech-oriented names like Computershare (ASX: CPU), Codan (ASX: CDA) and Uniti Group (ASX: UWL), which each set a 52-week record.
Finally, several IPOs will hit the ASX this week, including:
- Lending instalments provider, Latitude Financial Services (ASX: LFS) – Tuesday, 12pm AEST
- Game developer, Mighty Kingdom (ASX: MKL) – Wednesday, 11am AEST
- Mineral explorer, Nickel (ASX: NKL) – Friday, 11:30am AEST
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