US stockmarkets ended the week more than 3 per cent higher to lock in a fourth straight week of gains.
The rally was supported by a downside surprise in US inflation data and the continued flow of better-than-expected earnings.
The ASX200 also closed higher for a fourth straight week, and it is now 10 per cent above its June lows.
The continued recovery on Wall Street supported the ASX200 and helped it to consolidate its move above the key 7000 level.
Here are the top five things to watch in markets this week:
1. Australian June half season in focus
The Australian June half earnings season is still in the early days, and thus far, results have been mostly as expected.
This week major companies, including BHP, Santos, ASX, Origin and Cochlear, are set to report.
You can read our full preview of what to expect from BHP’s earnings report here.
2. RBNZ to raise rates by 50bp
The Reserve Bank of New Zealand is expected to raise its official cash rate by 50 basis points for a fourth consecutive time to 3 per cent as the central bank acts to contain strong domestic inflation pressures.
3. Australian jobs report for July
Last month the unemployment rate fell to a fresh record low of 3.5 per cent from 3.9 per cent, boosted by a booming 88.4k increase in employment.
July jobs data is expected to show a 25k increase in employment, leaving the unemployment rate unchanged at 3.5 per cent.
4. Retailers into earnings season spotlight
Q2 US earnings season is now in the home straight, with just 9 per cent of S&P500 companies left to report.
This week will see the giant retailers take the spotlight with reports set to drop from Walmart, Home Depot, Lowes and Target.
Last month, Walmart, the largest employer in the US, sent shockwaves through the retail sector as it warned that its operating profit would slump by 13 per cent in 2022, having previously forecast a mild 1 per cent decline.
5. AUDUSD rises to a nine-week high
The AUDUSD screamed higher last week to close at a nine-week high near .7120 after US inflation surprised to the downside.
If the AUDUSD can break resistance at .7150, it would open the way for a more robust recovery towards .7400c.
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