Key economic releases last week

• Australian, EU and US preliminary PMI readings were in contractionary territory. EU readings were better than expected while US readings were weaker than expected. These are indicative of a further slowing of major global economies.

 

Key releases for the week ahead

• Australian retail sales
• US consumer confidence and personal spending
• US employment data
• US PCE inflation
• China PMIs

 

Chart of the week

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preliminary PMI readings last week continued to indicate further contraction across global economies. This has historically preceded weaker earnings. The chart above shows that it is one of several indicators tracked by the Bank of America to forecast earnings. Current consensus remains well above the implied earnings projections of several indicators. We remain cautious on the outlook for earnings relative to consensus and therefore the outlook for equities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

–

Monday 28 November 2022, 4.30pm

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.