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The Week Ahead: Trump vs Kim

It’s nearly all over bar the shouting. We can just about stick a fork in Singapore’s third-quarter earnings season because it’s almost done. Just one more company in the Straits Times Index (SGX: ^STI), namely, Golden Agri-Resources (SGX: E5H), is left to report.

So next week’s attention is likely to focus on geopolitical events and economic numbers.

At the top of the agenda is likely to be the on-going tension between America and North Korea. No one quite knows whether it is handbags at ten paces or something more serious. But some aren’t taking any chances, as money migrates to safe-haven assets. Sound like a buying opportunity to me.

The Fed will release the minutes of its Federal Open Market Committee meeting in July. It left interest rates unchanged at between 1% and 1.25%. But it added that it would start reducing its US$4.5 trillion portfolio relatively soon. Some are wondering if events in North Korea caused the Fed to change its mind.

Chinese economic numbers are a little on the light side next week. The retail sales figures could be the only focus of attention, as investors try to gauge the health and spending patterns of Chinese consumers.

China will also release house-price data towards the end of the week. In June, average house prices in 70 cities rose 10.2% year-on-year. This followed a 10.4% in May. It was the 21st straight month of gains. But there are signs that it is gradually coming off the boil.

Japan will release its preliminary GDP figures for the second quarter. The market is hoping that the expansion that it was expecting in the first quarter could now happen in the second quarter. There are also hopes that private consumption could drive growth. Japan will also report its latest inflation numbers.

Malaysia is also pencilled in for second-quarter GDP numbers. In the first quarter, private consumption, exports and investments grew at a faster rate. The economy expanded at its fastest rate since the start of 2015.

And finally, Singapore will report balance of trade at the end of next week. Another rise in the trade surplus is expected as the global economy continues to show signs of improvement.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.