Weekly Market Update | 10 July 2023

 

Key economic releases last week

  • ANZ job ads fell 2.5% MoM
  • RBA held rates at 4.1%, market had been expecting another 0.25% hike to 4.35%
  • US ISM Manufacturing PMI fell to 46, below expectations for 47.2. The Non-Manufacturing PMI fell to 54.4 but was above expectations for 54.1
  • US jobs data was mixed as nonfarm payrolls rose 209,000, below expectations for 225,000, but average hourly earnings rose more than expected by 0.4% MoM or 4.4% YoY. Job openings fell more than expected to 9.824m but remains at strong levels.
  • China’s Caixin Manufacturing PMI rose 50.5 beat expectations for 50.2. The Non-Manufacturing PMI rose 53.9, below expectations for 56.2.

Key releases for the week ahead

  • Westpac consumer sentiment, NAB business confidence
  • US inflation data
  • China inflation data
  • China lending data
  • China trade data

Profit cuts outweigh upgrades in major regions

The quarterly US earnings season kicks off again this week. Receding concerns around US banking issues and optimism around the implications of Artificial Intelligence on earnings saw upward revisions to earnings in May and early June, however, analysts have been back to downgrading earnings expectations since then.

 

 

 

 

 

 

 

 

 

 

 

 

With more resilient consumer spending and general economic data, especially in the US, results from this earnings season may be solid. However, markets will be closely watching forward guidance, especially in the technology sector, with semiconductors of particular interest due to its early exposure to AI demand.

Industry trends are also a key input into our broader views, so we will continue to pay close attention to earnings seasons, with the Australian annual reporting season also coming up next month.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Monday 10 July 2023, 3pm

For more information on the above please contact Bentleys Wealth Advisors directly or on +61 2 9220 0700.

This information is general in nature and is provided by Bentleys Wealth Advisors. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decision based on this information.