Proactive Investors
Published Apr 17, 2023 09:34
Updated Apr 17, 2023 10:00
The morning catch up: Earnings season to influence markets; China grows
Expectations for a weak earnings season in the US shouldn’t affect today’s expected ASX rise.
Interestingly, bank stocks rallied on stronger-than-expected earnings from JPMorgan (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC), however, other S&P 500 companies are gearing up for sharp profit falls.
ASX 200 futures are 0.2% higher at 7,390, pointing to a solid day of trading.
The markets are likely to be influenced by earnings commentary as well as a speech by Federal Reserve Bank of Richmond president Thomas Barkin, governor Michelle Bowman and New York Fed president John Williams.
Meanwhile, the Reserve Bank of Australia (RBA) will release the minutes of its April monetary policy meeting.
In Australia, Rio Tinto Ltd (ASX:RIO) will release its first quarter results on Thursday along with gas giant Santos. This will be followed on Friday by mining giant BHP (ASX:BHP) Group Ltd (LSE:BHP, ASX:BHP)’s quarterly as well as quarterlies from Whitehaven Coal (ASX:WHC) Ltd and Australia’s biggest listed energy player, Woodside Energy Group Ltd (ASX:WDS, LSE:WDS, OTC:WOPEF).
Investors will also be keeping a keen eye on inflation figures from New Zealand, Malaysia, Canada and the Eurozone.
Looking at China as WA Premier Mark McGowan heads over there, it will release its monetary policy stance on Monday and data on the strength of its economy on Tuesday.
We are likely to see Chinese GDP figures show a sharp acceleration in growth as it now emerges from the damage caused by its lengthy lockdowns.
Analysts polled by AFP expect an average of 3.8% year-on-year growth in the period from January through March.
“The recovery is real, but still in its early stage,” Larry Hu, chief China economist at the investment bank Macquarie, said.
Hu said a rebound “will be gradual, largely due to the weak confidence” of consumers, which in turn makes companies “reluctant” to hire more staff.
Here’s what we saw (source Commsec):
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