Weekly Reports | Mar 05 2021
For a more comprehensive preview of next week's events, please refer to "The Monday Report", published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.
By Greg Peel
Tonight’s US jobs report for February will be interesting in the context of current bond market volatility, and subsequent stock market volatility. We’re likely back to the old "good news is bad news” theme.
A “beat” of forecast jobs additions would likely enhance inflation fears and lead to further gains in bond yields, and thus falls in stock indices, even though rising employment is a positive sign of economic recovery, which is good for stock markets.
Wednesday night’s private sector report was a “miss”, but then for some reason the two never seem to correlate.
With the RBA having acted to stymie rising yields in Australia, and the Fed determined not to do so, next week it’s the ECB’s turn to make a decision when it meets on Thursday night. Note that the US ten-yield has jumped 42 basis points in a month, Australia’s 61bps, but Germany's only 14bps, and only to 0.3%, compared to 1.57% and 1.84% respectively.
Next week the US reports CPI and PPI. More fun and games.
China also reports inflation numbers next week.
In Australia we’ll see the NAB business and Westpac consumer confidence surveys.
On Friday S&P will announce the quarterly rebalancing of ASX indices – who’s in, who’s out.
The ex-dividends continue to flow next week.
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