A quiet night overseas dominated by US politics again. Little movement in commodity prices as the threat of nuclear war with North Korea recedes. This will allow the market to focus back on stock specific issues and the plethora of results today. Volume was again muted yesterday but it may just be that no one has enough conviction until they have had a good chance to analyse the results. So far, the banks have been the stand outs. This is despite the concerns of profit growth being minimal. We have seen good results from CBA, ANZ and BEN, all showing how it is still a very profitable environment to be operating in. Resources too have been ok but I think we expected too much. There was a little too much optimism on the bounce in resource profits. Industrials have been all over the place but certainly not enough to get massively enthusiastic about. Some shockers too.
The range is still locked and loaded at 5700 to 5800 and here we are bang in the middle. Could go either way.
All about results today. And wages growth. Likely to be disappointing.
Local economic news to watch for:
- Aus Wage Price Index QoQ (2Q) (0.5% exp, 0.5% prev)
- Aus Wage Price Index YoY (2Q) (1.9% exp, 1.9% prev)
Europe had a good night and remains the region of choice for the money managers at the moment. But give the good GDP numbers from Japan that market may start to attract some attention. Nikkei banging on the door of 20k.