Trader’s Diary: Everything you need to get ready for the week ahead

It was a big week in economics data last week, with statements from central banks and US jobs data the main headline grabbers.

The US Federal Reserve announced it will start tapering monthly Treasury buy-back program by US$15bn a month (currently at US$120bn), effectively reducing its stimulus support for the economy.

The US central bank will also keep its 0% to 0.25% federal funds rate target unchanged, and said it will be “patient” in raising rates.

In his official statement, Fed Governor Jerome Powell said the bank has “achieved a substantial further progress” towards its twin goal of maximum employment and inflation average of 2%.

The week saw Wall Street finishing at record highs, with Friday’s strong jobs reports revealing that the US economy has added 531,000 jobs in October, compared to 312,000 in September.

In Australia, the Reserve Bank of Australia (RBA) has decided to stick with its 0.1% cash rate target for the time being, but hinted it might rise earlier than the 2024 target.

The RBA decided not to defend the bank’s target cash rate, saying the recent rise in bond yields reflects the earlier-than-expected progress we’re seeing in the economy.

The bond market has recently priced in a rate rise by the middle of next year, driving the April 2024 (three-year) government bond yields to as high as 0.6%, six times the RBA’s cash target.

But the RBA Governor Philip Lowe has rejected calls to raise the bank’s official cash rate to sync it with the bond market, saying that he won’t alter his monetary stance until inflation is “sustainably” between the 2 and 3 per cent range.

“The Board is prepared to be patient (in hiking rates), with the central forecast being for underlying inflation to be no higher than 2.5% per cent at the end of 2023 and for only a gradual increase in wages growth.”

Economic calendar for this week

Australia

The key data this week will be unemployment rate data on Thursday.

MONDAY:
Skilled jobs vacancies.

TUESDAY:
NAB business confidence.

WEDNESDAY:
Payrolls and wages for October.
Westpac consumer sentiment.

THURSDAY:
Unemployment rate for October. The print was 4.6% in September, and the market expects to rise to 4.7% in October.
Consumer inflation expetations.

FRIDAY:
Overseas arrivals and departures.

International calendar

US (US time)

The key data in the US this week will be the inflation numbers due out on Wednesday.

MONDAY:
US consumer inflation expectations.

WEDNESDAY:
US consumer prices / inflation.
Weekly initial jobless claims.

Europe (European time)

TUESDAY: Economic sentiment.

THURSDAY: European Central Bank (ECB) forecast.

FRIDAY: EU industrial production.

China

THURSDAY: Chinese unemployment rate.

ASX IPO calendar for this week

MONDAY:
SiteMinder (ASX:SDR) – the world’s leading open hotel commerce platform that helps hotels to sell, market, manage and grow their business from one place. The company raised $627m at $5.06 a share.

TUESDAY:
Dundas Minerals (ASX:DUN) – a mineral explorer that raised $6m at 20c a share.

WEDNESDAY:
Green Technology Metals (ASX:GT1) – a mineral explorer that raised $24m at 25c a share.

THURSDAY:
Cosmos Exploration (ASX:C1X), a mineral explorer that raised $5m at 20c a share.