Immediate event risks ahead - Westpac

Analysts at Westpac note the forthcoming events for traders to pay attention to.

Key Quotes:

NZ: The Government’s Pre-Election Fiscal Update (PREFU) is expected to unveil an increased operating surplus thanks to a higher tax take. Markets will be interested in any changes to the bond issuance program.

Euro Area: ECB president Draghi gives a key note speech at the opening ceremony of the Lindau Meeting on Economic Sciences.

US: Jul new home sales are expected to be flat. Sales were up 9.1% in the year to June but momentum has slowed a little in recent months. Fedspeak involves Kaplan at a petroleum association lunch in Texas.

Flash Markit PMIs are released for Japan, the Euro Area and the US. The manufacturing PMI in the Euro Area has held above the other regions but pulled back last month to 56.6 from a cyclical high of 57.4. Questions surround whether the momentum will continue to slow as a stronger Euro affects competitiveness."