Market Talk: Investors focus on US reporting season
Duncan Bridgeman discusses the latest share market news on NBR Radio and on demand on MyNBR Radio.
After a tumultuous September quarter, global investors are now focused on the upcoming reporting season in the US but market volatility continues.
“The momentum tells us that the August-September downtrend is still in control of global markets,” IG strategist Evan Lucas says in an email this morning.
He asks whether the sell-off has created a value opportunity or whether there is more risk to come.
“The US earnings season should be able to give us a clearer insight into this question. But what we’re seeing is that earnings and revenue growth remain below historical trends, yet the pull back in the S&P, for example, has created some of the largest discount gaps to present value in the past three years – so value is there.”
Uncertainty about emerging markets remains though, with the International Monetary Fund cutting its global growth forecasts for a second time this year, citing weak commodity prices and a slowdown in China.
On the local front, brokers suspect there has been some profit-taking in some of the blue-chip shares. Mighty River Power, for example, has been sold off recently and its shares are now trading below the IPO price in 2013.
Meanwhile, Air New Zealand shares climbed another 2.5% on the NZX today, suggesting investors are encouraged by the presentations at the annual meeting yesterday.
Making news today is the A2 Milk Company, which has announced a capital raising plan of up to $43 million to fund working requirements for increasing infant formula sales.
Tune in to NBR Radio to hear more on these issues, plus PGC’s suspension from trading and what to look out for in the week ahead.
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NBR Radio
Thu, 08 Oct 2015
Thu, 08 Oct 2015
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Market Talk: Investors focus on US reporting season
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