All Quiet before US Earnings

18 July 2023

NZ

The New Zealand market (NZX50, -0.6%) was down on Monday, as markets wait nervously for NZ inflation data.

The market is expecting headline inflation to come in at 5.9%, which is a slow-down from its peak but means that it is still elevated forcing the RBNZ to possibly hike one more time. This saw rate-sensitive stocks falling namely gen-tailers, property and retirement village operators.Vulcan Steel fell -6.9%, and Rakon was down -3.4% following their earnings downgrade. On the flipside Steel and Tube upgraded its earnings guidance for the 2023 financial year, helped by favorable pricing and improving margins.


Australia

The Australian has obtained leaked sales data from Coles Group, revealing a concerning trend among consumers who are reducing their purchases of essential household items such as kitchen cleaners, body wash, sponges, wipes, and bathroom disinfectants. The data indicates a significant decline in Coles’ sales, particularly in categories like bath soap and body wash, which have experienced a sharp decrease of 33.3% over the 12-month period leading up to May. Additionally, the volume of these products sold has dropped by 38.5%. Sure sign of weakening consumer sentiment as consumers cut down on essentials?


Week Ahead

Monday

US: Empire Manufacturing; China: Q2 GDP, IP, Retail Sales, Fixed Assets; Australia: Whitehaven Coal Q Production.

Tuesday

US: Retail Sales, NAHB Housing Market Index, IP; Australia: RBA Minutes, Blackmores Scheme Meeting, Rio Tinto Q Production.

Wednesday

US: Housing Starts, Building Permits; Eurozone: CPI; Australia: Q Production: BHP, Woodside, Northern Star, Beach Energy; NZ: CPI.

Thursday

US: Initial Jobless Claims, Existing Home Sales, Philadelphia Fed Outlook; Australia: Employment, NAB Business Confidence, Q Production: Santos, BHP, Evolution Mining.

Friday

Eurozone: Consumer Confidence; Japan: National CPI; Australia: Atlas Arteria Q3 Revenue & Traffic Update; NZ: Arvida Annual Meeting

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