- Australian corporate earnings have been a"positive surprise" amid investor euphoria over estimate-beating margins, but historical trends suggest results could take a turn as the earnings season approaches its end, Macquarie analysts said.
The upbeat earnings have prompted investors to add back to their portfolio, especially after reducing their equity exposure in the recent correction at the start of the month, the analysts noted. The cycle is slowing and the key uncertainty is how much it improves in reaction to rate cuts by the U.S. Federal Reserve and the Reserve Bank of Australia, analysts said, adding that results' upbeat momentum tend to deteriorate towards the end, especially in the final week.
A bulk of the earnings season still lies ahead, with iron ore majors BHP and Fortescue, energy giants Woodside (OTC:Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.
Australia Australia Latest News, Australia Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »