Good Morning,
Trust that you had a nice weekend and are looking forward for another busy week ahead…
The Olympics has certainly been entertaining and yes, the Hawks are still on top of the ladder (just).
Will we win a 4th straight flag?
It will be tough…………
Especially when you lose to Melbourne the previous week!
So what can we expect this week?
The AUS reporting season gathers pace with GPT, BHP, CSL, AMP, NAB and LLC to name some of the “big names” set to report.
So far, our theory that stocks outperform if they beat analyst forecasts has been “spot on”, with CPU, RMD, DOW, BBN, MFG and SVW all illustrating “positive earnings drift”.
A busy week for us here @ the PEAK Headquarters …………
Globally, all eyes will be on the UK………….
Is “Brexit” having any side effects on the British economy?
Well…. the BOE forecasts unemployment will rise to 5.5 percent at the end of next year from 4.9 percent currently.
A faltering job market combined with an upswing in prices could hit a crucial part of the economy: domestic spending. That key driver of growth has so far proved resilient. Even with consumer confidence dropping, the British Retail Consortium said that retail sales rose the most in five months in July.
Even In the US, the poor retail sales led to a weakness in the Dow Jones (-42 points) …
"The retail sales figures were softer than expected, disappointing," said Eric Viloria, a currency strategist at Wells Fargo Securities LLC in New York. "It could be seen as a slightly lower probability for a Fed rate hike in December."
Certainly a lot of go over as we focus on today’s earnings….
The SPI is down 8 points this morning
Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business
