Outlook for the week

• Last week, Asian USD corporate bond spreads rallied >5% on a strong recovery in the Chinese property sector. The gross floor area sold by the top 10 developers rose 26.3% to 88.7 million square meters from 70.3 million square meters a year earlier. This week will be eventful in the US, with the FOMC meeting Thursday morning and subsequently the release of US GDP data later in the week.

Key economic releases for the week

• Tuesday, 28 July 2020: US Consumer Confidence
• Thursday 30 July 2020: FOMC Rate Decision (2:00 am in Singapore), US GDP
• Friday 31 July 2020: US PMI
• USD1t stimulus by US Republicans may be announced in the week

Past week: Key events

• A slew of REITs in the commercial, industrial and retail sectors released earnings last week, including Suntec REIT, Aims APAC REIT, Mapletree Industrial Trust, CapitaLand Mall Trust, Ascendas REIT and Mapletree Logistics Trust. Notably, retail portfolio valuations fell less than expected by 2.5% and industrial portfolios displayed more resilience amidst COVID-19 headwinds.
• The EUR750bn EU Recovery Fund was passed on 21 July. The EURO appreciated against the USD as the USD index fell below 95. This raises inflation risks for the US as the cost of imported goods to rise on a weaker USD.