The creeping reality of higher interest rates and a weak Australian dollar means sharemarket investors should position themselves in banks, but avoid other interest rate sensitive sectors such as real estate, according to JPMorgan.
On November 9, National Australia Bank will report earnings for the year ended September 30, with analysts’ consensus forecasts calling for a cash profit before notable items of $3.64 billion. The move reflects the US Federal Reserve’s fourth consecutive interest rate increase of 0.75 percentage points on Wednesday in a bid to cool AmericanJPMorgan said key beneficiaries of a rebound in the Australian dollar are companies like Qantas, which incurs costs such as fuel in US dollars, but earns and reports in Australian dollars.