What the latest economic data could mean for ASX 200 shares

There is a lot of new economic data set to be released by the Australian Government this week. Here's what that could mean for ASX 200 shares.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Data. That's what many experienced investors are focused on amid all the noise on the S&P/ASX 200 Index (ASX: XJO) this week.

There are a lot of updates that are set to be released by the Australian Government in coming days. That kicks off today, with the Reserve Bank of Australia (RBA)'s meeting minutes. Reserve Bank Governor Philip Lowe will give a speech, while the government will give an update on JobKeeper and JobSeeker.

Investors are also eyeing a fiscal and economic update due on Thursday, which will give a more detailed look at those programs and a budget update.

So, what do all these different announcements and datasets mean for ASX 200 shares in 2020? Here's a closer look at 3 major ASX sectors and how they could be impacted.

ASX 200 retail shares

I think a big one here is the JobKeeper updates today and Thursday. According to news reports, the payment programs will be extended beyond September, but with a change in eligibility.

Aussie retailers have been struggling in 2020 with coronavirus restrictions reducing in-store sales. I think extended government support would be good news for retailers. More government support means more money in the economy and higher employment. Another helpful impact could be more spending money in the pockets of everyday Aussies.

That has helped ASX retail shares like JB Hi-Fi Limited (ASX: JBH) and Super Retail Group Ltd (ASX: SUL) climb higher in 2020. Online sales channels have been the key as demand for particular items has soared. 

There's also preliminary retail sales data for June that will be released by the Australian Bureau of Statistics (ABS) on Wednesday. That will give investors a good gauge of how sales are tracking and what to expect from the August earnings season.

ASX bank shares

Governor Philip Lowe's speech is set to focus on COVID-19, the labour market and the government's balance sheet.

I think ASX bank share investors will be watching the speech and RBA meeting minutes closely.

Major banks like Commonwealth Bank of Australia (ASX: CBA) are a key part of the government's COVID-19 response plan. The banks are such a crucial part of the Aussie economy that I think we will see strong share price moves this week.

Support for employment would surely be welcomed by the Aussie banks and the economy as a whole. Any extension of JobKeeper would also reassure investors that the risk of mass defaults in September/October is low.

Fiscal and monetary stimulus is currently propping up the economy. An extension of that, and the form that extension takes, will impact on the banks' ability to lend with confidence and maintain asset quality in 2020.

ASX REITs

I think the preliminary retail sales data on Wednesday will be the big one for retail REITs like Scentre Group (ASX: SCG). The JobKeeper and JobSeeker update today and Thursday will also be worth watching.

Looking further ahead, we're also expecting an update on building permits from the ABS next Thursday. That is one to watch for investors in ASX 200 diversified REITs like Mirvac Group (ASX: MGR). The new data could provide an indication of new industry activity, competition and potential trends for pricing and supply in the short to medium-term.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

These ASX 200 shares could rise 20% to 50%

Big returns could be on the cards for owners of these shares according to analysts.

Read more »

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Here are the top 10 ASX 200 shares today

It was a horrible way to end the trading week today for ASX investors.

Read more »

Piggy bank sinking in water symbolising a record low share price.
52-Week Lows

9 ASX 200 shares tumbling to 52-week lows today

Israel's strike on Iran on Friday dragged several ASX 200 shares to new depths.

Read more »

Female miner smiling at a mine site.
Share Gainers

Up 834% in a year, guess which ASX mining stock is hitting new all-time highs today

The ASX mining stock has gone from strength to strength over the past year.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why COG, Karoon Energy, Netwealth, and Pilbara Minerals shares are dropping today

These ASX shares are ending the week deep in the red. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Fiducian Group, Northern Star, Paradigm, and Santos shares are charging higher

These shares are avoiding the market selloff.

Read more »

Dollar sign in yellow with a red falling arrow in front of a graph, symbolising a falling share price.
Share Market News

Why did the ASX 200 just sink to new 2-month lows on Friday?

It’s been a rocky week for the ASX 200. But why?

Read more »