The Week Ahead: Shop ‘Til You Drop
It feels like the lull before the flood of second-quarter earnings that is set to kick off in July. Until then, the US Republicans will hope to repeal Obamacare and replace it with Trumpcare.
Across the Atlantic from America, the Euro Area will provide its flash estimates for June inflation. In May, consumer prices increased 1.4% year on year. Prices grew at a slower rate than in April. The latest number could provide some clues as to when the European Central Bank could start tightening its money supply.
China will announce its closely-watched Purchasing Manager Indices. In May, the official NBS Manufacturing PMI stood at 51.2. That would suggest the manufacturing sector is still expanding. The Non-manufacturing PMI rose to 54.5, which implied that the services sector is still enjoying its day in the sun.
Japan will report its latest inflation numbers. In April, core inflation of 0.3% was below its long-term average of 2.6%. There are signs that there has been a gradual pick up in the rate of inflation. It is still probably not quite enough to concern the Bank of Japan just yet. The low rate of inflation in Japan could be due, in part, to sluggish household spending. In April, Japanese households spent 1.4% less than a year ago.
Vietnam is one Asian country that seems to be in the peak of health. Next week could provide more insights into how well it is doing, when it reports GDP, retail sales and inflation numbers. In the first quarter, Vietnam’s economy grew 5.1%, which was the weakest quarterly growth for three years. Meanwhile, retail sales rose 11.6% in May, following a 11.1% growth in April. Tourism and general goods were some of the best performers. The country also has a healthy dose of inflation, which should continue to drive retail spending.
It’s time for those Singapore bank lending numbers again. In April, bank lending rose to a record high of S$631 billion. The increase was driven by consumer loans and lending to businesses. Look out for the response from Singapore’s three listed banks, namely, DS Group (SGX: D05), OCBC (SGX: O39) and UOB (SGX: U11).
And finally, the Great Singapore Sale is in full swing. It kicked off on 9 June and runs until 13 August. So whether you are a fan of the heartland malls or prefer to shop in glitzy Orchard Road, there’s probably a bargain out there just waiting to be snapped up.