Global markets were generally lower on Friday although the US Dow Jones index managed to touch a new high. US quarterly profit reports continue to dominate news flow especially as investors have been counting on earnings to support the relatively high valuations for equities. We are now about halfway through reporting season, and S&P 500 companies are on track to increase earnings by 10.8 per cent, according to Thomson Reuters estimates.
Closer to home, local earnings season kicks off across Australia & New Zealand. In Australia analysts are expecting another strong earnings season, primarily reflecting a rebound after two tough fiscal years for the Resources sector. In NZ, earnings will be very interesting to watch given the market is at all-time highs and generally looks expensive in terms of valuations.
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Stock Markets, Simplified.