Originally published by CMC Markets
The Australian company reporting season seeks the investor spotlight this week. However, new highs for US markets on White House promises of tax cuts could see macro factors swamp local news. A further surge in oil prices should see energy sector volatility continue this week.
Despite a ten point gain for futures markets on Friday night reports so far today may drain investor enthusiasm. Around one quarter of the top 200 companies release annual or semi-annual earnings this week. Aurizon Holdings Ltd (AX:AZJ) and Newcrest Mining Ltd (AX:NCM) missed consensus forecasts horribly, and may come under pressure at the open. In contrast JB Hi-Fi Ltd (AX:JBH) bucked this morning’s poor trend with yet another lift in earnings, and should be in favour. Cochlear Ltd (AX:COH) and Bendigo And Adelaide Bank Ltd (AX:BEN) also report today.
An OPEC report suggesting better than 90% compliance with agreed production cuts has all major oil contracts trading back towards the top of the recent trading range. Oil and gas stocks could lead the market higher. Concerns about record highs in US markets on possible US corporate tax cuts could weigh on local investor sentiment, and developments in the immigration ban legal cases could affect markets as traders assess the White House’s ability to turn campaign rhetoric into legislative assembly.