Five at Five AU: RBA Rate Hike; What It Means for Markets; Latest Reporting Season Updates 

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The S&P/ASX200 closed lower today, dropping 18.80 points or 0.25% to 7,539.30 after reaching a 100-day high earlier in the day. 

The index has surged by 0.77% over the last five days and is now only 1.12% from its 52-week peak. Unfortunately for investors, Sayona Mining Ltd (ASX: SYA) and Lake Resources NL (ASX: LKE, OTCQB: LLKKF) were the worst-performing stocks on this index, with losses of 7.69% and 5.59%, respectively.

Josh Gilbert eToro

This week in the markets, eToro’s market analyst Josh Gilbert has identified three significant events Australians must be aware of: reporting season could propel the index to new highs; RBA rate decision is unlikely to be postponed; and Disney recently released its earning figures. Keep an eye out for these updates, as they may significantly impact trading.

The ASX200 has had a great start to the year, climbing 7% and just shy of record highs. Although the reporting season begins on February 13, big names like AGL Energy (ASX: AGL) (ASX: AGK) and Mirvac Group will release their results.

It has been a tough start to the year for AGL, with shares down around 5% after a solid 2022 as electricity prices soared. Now new CEO Damien Nicks has an arduous task ahead.

Estimates are for revenue growth of 25% and earnings of $0.28, but investors will likely focus on its decarbonization efforts.

Australian inflation rose more than expected in the fourth quarter, reaching 8.4%. The Reserve Bank believes this is the peak, and there is no need for further interest rate hikes. With large temporary shocks in non-essential areas such as travel, up 29.3% in December, the RBA may need to reconsider its position.

And whilst the employment situation remains robust and inflation remains high, it’s a green light for the RBA continue hiking.” Associate portfolio manager of T Rowe Price’s Dynamic Global Bond Strategy Scott Solomon says of the likely hike.

The Reserve Bank of Australia (RBA) might soon begin its cycle of rate hikes and is expected to continue until they reach a much lower terminal rate than the Federal Reserve in the United States. RBA may raise rates once or twice by 2023, with speculation suggesting it could stop between 5%.

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