Recently released wages data increases the likelihood the RBA will pause its rate hiking campaign for the near term, economists say. A soft landing for the economy is far from guaranteed, but the runway is getting clearer.
Despite continuing strong economic data for Australia, markets have forecast significant earnings downgrades, and results have been mixed so far. But a main highlight – CBA’s record $10 billion profit – may not be enough to improve investors’ outlook on the banking sector.
After a three-month run as the most-traded ASX stock on Selfwealth’s platform, Neuron Pharmaceuticals ceded its spot to CBA in June as healthcare, mining and banking stocks jostled for investors’ attention.
A higher net interest margin drove a 10 per cent increase in CBA’s net profit after tax, while Wesfarmers benefited from a strong performance by Kmart Group and the chemicals division. But with much of the upside for these companies already priced in, investors should be clear about valuations before buying in.
Analysts agree Australia’s big four banks are entering 2023 from a position of strength as they pass on rising interest rates to borrowers. Headwinds remain, however, and the total return picture for shareholders looks more complex.
Here’s what Australian financial planners and advisers need to know on Thursday morning…
