After a Greek capitulation and a positive week for Chinese equities after extreme intervention by regulators, once again, global markets appear positioned to remain reasonably calm. A series of data points from China scheduled for release this coming week, including insight into real estate— another market in the country that has come under selling pressure — will help investors assess the strength of the most critical developing economy. Skeptics of the bull run in China last week will be keeping a close eye on second-quarter GDP figures in Korea, pointing to the fact that despite sluggish demand signals, the economy there is growing at a faster pace than its neighbors. In the U.S., earnings season will continue to rumble forward. After a mixed set of releases from major banks, other facets of Wall Street will announce results in the coming days such as advisory boutiques, research firms and private equity stalwart KKR & Co.
Monday, July 20: The National Bureau of Statistics of China releases June China housing index data. After a 5.7 percent decline in May, some analysts worry that more selling pressure may have been placed on the market by the rapid sell-off in Chinese stock markets, which forced margin liquidations by many retail investors. Prior to the run-up in the Shanghai and Shenzhen stock exchanges, the property markets — the only form of investment readily available to the Chinese middle class in prior years — had been helped by new regulations that allowed individuals to finance homes with lower down payments.
Tuesday, July 21: A speech by Reserve Bank of Australia governor Glenn Stevens will coincide with the central bank’s second-quarter consumer inflation report. When presenting to a summit held in London late last month, Stevens said that inflation remains “a bit too low” on a global basis and that he expects developed-markets central banks to continue to pursue accommodative policy. He warned, however, that they should not ignore the risk of keeping rates too low for too long.
Wednesday, July 22: The Bank of Korea, South Korea’s central bank, releases second-quarter GDP data, a period during which the country was on high alert over a nationwide outbreak of Middle East Respiratory Syndrome (MERS). During the previous three-month period, the Republic of Korea’s economy grew at its slowest pace in two years. Meanwhile, South Korea’s central bank last week estimated that the economy of North Korea grew at a rate of 1 percent in 2014, though it echoed warnings from the United Nations that shortages for basic foodstuffs stemming from a drought this year threaten to cause widespread malnutrition.
Thursday, July 23: Private equity giant KKR & Co. will announce quarterly results on Thursday. Last week the firm bowed out of the race to acquire Melbourne–headquartered ANZ Banking Group’s Esanda Dealer Finance unit.
Friday, July 24: Moody’s Corp., the parent company of credit ratings agency Moody’s Investors Services, will announce second-quarter earnings. Double-digit growth in its research and ratings segments helped the firm beat analyst expectations for the first three months of the year. Moody’s analysts last week welcomed the Greek parliamentary vote to accept creditors’ terms, though warned that a default is still possible.
Saturday, July 25: The Newport Folk Festival spans the weekend. The festival began in 1959, albeit with a hiatus starting in 1971 and revived in 1985. In 1965, Bob Dylan was booed by an angry crowd at the festival after he took the stage with a fully amplified band. The acts performing this year include Roger Waters, Tommy Stinson and Courtney Barnett.
