The Week Ahead
Initial focus of the week will be on any solid announcement on the rumored EUR 85b bailout from EU/IMF on Sunday, as well as the terms tied to the bailout. Onwards it a week full out higher important economic data. The question of whether Fed will complete the $600b QE2 and whether there will be QE3 are still in investors' mind even though they're on the back seat in the past two weeks. The job report on Friday, plus other data including ISM indices would continue to trigger adjustments on such expectations. Also, China will also released manufacturing PMI, which should trigger some volatility in Asian equities and risk sentiments.
Also, ECB meeting will be an important event of the week. Unlike prior meetings, markets' opinions on whether ECB will make another U turn and soften its hawkish stance are quite divided. In addition, there are some speculations that ECB might somewhat hint at delaying stimulus exit, or at least slowing the pace.
* Monday: New Zealand trade balance; Japan retail sales; Canada current account, IPPI/RMPI; UK pre-budget release
* Tuesday: Japan manufacturing PMI, unemployment rate, household spending, industrial production, housing starts; Australia building approvals, current account; German unemployment, Eurozone unemployment rate, CPI; Canada GDP; US house price, consumer confidence
* Wednesday: Australia GDP; German retail sales, Eurozone manufacturing PMI; UK nationwide house price, manufacturing PMI; Swiss SVME PMI; US ADP job report, productivity and unit labor costs, ISM manufacturing, Fed Beige Book
* Thursday: Australia retail sales, trade balance; Swiss GDP, retail sales; UK construction PMI; Eurozone GDP, PPI, ECB rate decision; US jobless claims, pending home sales
* Friday: Swiss CPI; Eurozone services PMI, retail sales; UK services PMI; Canada job data; US non-farm payroll, ISM non-manufacturing, factory orders
