Investors are jockeying for position ahead of a key week of corporate profits capped by a highly-anticipated speech by US Federal Reserve chair Jerome Powell at Jackson Hole, Wyoming, on the outlook for inflation and interest rate settings.
“If commodities roll over on a global slowdown it’s going to hurt,” said BetaShares chief economist David Bassanese.“Consensus numbers for fiscal 2023 are actually for a small decline in earnings. Everyone’s going to be challenged, we’re going to have a period of weak growth next year, sub 2 per cent [GDP] growth, commodity prices rolling over, so it’s not a great outlook and it’s really because people think oil, energy and resource companies will have a fall.
BetaShares economist David Bassanese said Jerome Powell is likely to maintain a hawkish posture at Jackson Hole. “I think the Fed will tighten [rates] more than the RBA, the big difference is wages,” said Mr Bassanese.