Originally published by CMC Markets
A number of factors will feed into investor outlook this morning. These include yesterday’s selling momentum; the escalating US rhetoric over North Korea; a slightly softer iron ore price and market reaction to Commonwealth Bank Of Australia's (AX:CBA) profit result
CBA has unveiled a clean result that’s largely in line with consensus expectations. Despite the fact that it’s a record headline number, the declining return on shareholder equity reflects easing business conditions for banks.
The question is whether CBA’s in line result will be good enough to attract bargain hunters given recent selling and the legal and regulatory risks arising from the Austrac situation. The chances are that any buying support for the stock this morning will be reasonably limited.
There has only been minor support for safe haven assets like gold and the Japanese yen following President Trump’s threats to North Korea. This suggests stock market investors will continue to take a wait and see stance on this situation at this stage.