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.
