The Week Ahead DBS, UOB and OCBS In Focus

Guess what? It’s time for those US non-farm payroll numbers again. In July a whopping 209,000 jobs were created. But that was still fewer than the upwardly-revised 231,000 jobs created in June.

The healthy US jobs scene has driven down the unemployment rate to 4.3%, which is a 16-year low. The proportion of people who are out of work in August is expected to remain unchanged.

China will report those closely-watched Purchasing Managers’ Indices. Both the manufacturing and services sectors are expected to show expansion in August. Any number greater than 50 should please investors.

Japan will report a couple of important consumer statistics too. Household spending is one of the keys to driving economic growth through Abenomics. So too are retail sales.

In June private consumption rose 2.3%, which was the first time it has been up for almost two years. Meanwhile, retail sales rose 2.1%. The robust numbers could be thanks to strong consumer confidence, which climbed to 43.8% in July. Overall, consumers appear to be satisfied with income growth and overall livelihood.

The firmer consumption picture would seem to suggest that the tightening job market, which has pushed unemployment to a 23-year low, is starting to have an positive impact on wage inflation.

Staying in Japan, UK Prime Minister, Theresa May, will be leading a delegation of business and government officials to meet with her counterpart Shinzo Abe. May will want to assure Japan that Brexit will not affect the 140,000 employed by Japanese companies in the UK.

And finally it’s time for those Singapore bank lending figures again. In June local banks lent a record S$635.5 billion. Lending was driven by consumer loans and lending to businesses. Another good set of numbers could give Singapore’s three listed banks, namely, DBS Group (SGX: D05), UOB (SGX: U11) and OCBC (SGX: O39) a welcome boost.

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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. Motley Fool Singapore has recommended UOB.