Global markets were generally higher overnight as the market traded in a relatively tight range. As we have discussed this week, US earnings season kicks off in earnest tonight and will be a focus for investors. Earnings will be as important as ever against the backdrop of rising interest rates, as without earnings growth it is hard to see valuation multiples staying at current highs (which would imply prices will likely fall).
Both the ASX and NZX were higher yesterday following global sentiment. One of the standout performers on the ASX was Treasury Wine Estates (TWE.AX) which jumped 4%.
Stock in Focus: Treasury Wine Estates (TWE.AX)
While there was no company specific news out yesterday, the release of an investment bank analyst report reiterating their overweight rating and $14.00 price target on the wine company saw TWE shares rally.
TWE has been one of our best performing stocks. Recent strategy changes by TWE to focus on premium wine brands has increased profit margins...
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