Indices finished mixed last week. While the Dow Jones in the U.S saw its biggest drop in a year, the HSI and Chinese indices swung higher.
 
The moves in the two biggest economies in the world were once again, data driven. China’s industrial production and export figures had added to signs that its economy is improving. The Shanghai Composite Index rose another 0.8% for the week, its fourth consecutive gain.
 
Over in the U.S, while data painted a rosy picture of the economy, indices were down over 2%, its most in a year. Claims for U.S. unemployment benefits which unexpectedly dropped last week to the lowest level in almost six years had added to concern that had 65% of economists in a Bloomberg survey predicting a reduction in Fed bond purchases in September.
 
Investors are all closely monitoring U.S data from now till the Fed’s meeting on September 17 & 18 where a decision made on the tapering of the US$85bn bond purchasing program. This week, data pertaining to home sales will hence be closely watched while in China, the HSBC Flash Manufacturing PMI for the month of August may substantiate the improved data investors saw last week.
 
Key Macro Data this week
Mon 19 Aug: Japan Trade Balance (Jul)
Tue 20 Aug: Japan All Industry Activity Index (Jun)
Wed 21 Aug: US Existing Home Sales (Jul),
Thu 22 Aug: China HSBC Flash PMI (Aug), Eurozone PMI (Aug), US House Price Index (Jun), Leading Index (Jul)
Fri 23 Aug: US New Home Sales (Jul)

Source: Macquarie Research - 19 Aug 2013