Global markets were higher overnight but pared gains after President Donald Trump said he is disbanding his manufacturing council as well as the strategy and policy forum as more of America's most senior executives resigned to protest Trump's response to the racially-based violence in Charlottesville, Virginia over the weekend.
The release of minutes from the latest Federal Reserve policy meeting earlier this month pointed to increasing concern about persistent low inflation, renewing the debate over whether the US central bank will lift rates for a third time later this year.
Yesterday saw several heavyweight companies across Australia and NZ report profit results, with the likes Fletcher Building and Woodside Petroleum beating market expectations, while Pharmaceutical giant CSL missed expectations. Once again, corporate profits across Australia and NZ will remain a focus locally, and early signs are that earnings are generally supporting both the ASX & NZX.
Stock in Focus: InvoCare (IVC.AX)
Funeral services company InvoCare saw its shares jump +4.5% as it released a strong half year result.
Looking at the headlines, sales were up +1.7% to 218.2m, which translated into a reported profit of $41.7m which was up 50.1% on last year. "Overall performance has been strong with increasing case volumes and market share stable in a competitive market," the company said. are pleased with the result and we see IVC as a great way to play the ageing population investment theme.
We are currently BUY rated on IVC.
Members should look out for our full report on IVC to be released in our weekly report.
Australia & New Zealand Market Movers
The Australian share market was higher on Wednesday (ASX 200 index +0.48%) thanks in large part to buying in the big banks and Telstra, as investors contended with one of the busiest days of the August reporting season. As touched on above CSL shares reported a good, but not good enough result which saw its shares fall slightly. Two of the days winners were oil & gas company’s Origin Energy and Woodside Petroleum, who’s results were received positively by the market.
The New Zealand market was higher once again on Wednesday (NZX 50 index +0.51%) as a positive start to earnings season bolstered confidence, and Fletcher Building rose after its expected profit downgrade. Fletcher Building reported a 23 percent drop in full-year operating earnings to $525 million, in line with its profit warning last month when the building products and construction company fired its chief executive, and said operating cash flows will improve in 2018 as will returns from construction. The market seems to have liked the fact that the final dividend was maintained at 19 cents per share.
3 Things Markets Will be Watching this Week
1. Corporate profits will be in focus as earnings season continues across Australia, NZ and the US.
2. The geopolitical situation as tensions remain high between the US and North Korea.
3. The Reserve Bank of Australia release minutes from its last meeting n Monday.
Have a Great Day,
Team