Markets at a glance 23 August
Around the grounds
The Australian share market is set to snap a 10-day winning streak as miners weigh heavily and investors sit on the sidelines ahead of key inflation data locally and a myriad of corporate earnings.
Diving into the detail, the mining index is down 1% but is up more than 3% for the week. Financials are also struggling for direction, pairing earlier losses to trade rangebound.
To the local currency trade, both the AUD and NZD are set to post another week of gains as risk sentiment is supported. The kiwi is up around 1.5% for the week and will mark its fourth week of gains if levels hold.
The dollar will be tested next week when local inflation data drops after the Reserve Bank of Australia (RBA) all but poured cold water on any near-term interest rate cuts, stating policy may need to stay restrictive for an ‘extended period’ to ensure price inflation can be tamed.
Finally, Treasurer Jim Chalmers said all members of the current Reserve Bank of Australia board will move to a new rate-setting board unless they request not to, as part of a reform of the central bank.
Changes are expected to be legislated through parliament by the end of the year and take effect early 2025.
In the news
Getting stuck into the companies reporting today and Inghams Group (ASX: ING) shares have dropped, as full year underlying NPAT comes in 6% below market estimates at AU$101.5 million. Looking ahead, the company sees FY25 core poultry volume declining by between 1% and 3%, due to a phased introduction of new Woolworths supply agreements and the impacts of cost-of-living pressures on consumers.
The stock has touched its lowest level since 2023 and on track for their worst day since 2019 if current losses hold.
It’s a similar story for shares of Accent Group (ASX: AX1), shares have slid as much as 14% in today’s trade as the footwear retailer reports a miss on full year net profit, with a final dividend of 4.5 cents per share, down on the 5.5 cent payout the previous year.
The stock is up nearly 25% YTD, as of last close.
On a brighter note, shares of Australian listed Mayne Pharma (ASX: MYX) have jumped by over 21% as the pharmaceutical company posted a net loss of AU$268.6 million dollars, smaller than the previous year, on revenue more than doubling to AU $388.4 million. The stock is down just shy of 40% YTD, as of last close.
Looking ahead the corporate calendar is busy. BHP Group (ASX: BHP), Lovisa Holdings (ASX: LOV), Viva Energy (ASX: VEA), Bendigo and Adelaide (ASX: BEN), Worley (ASX: WOR), Coles (ASX: COL) and Nine Entertainment (ASX:NEC), just to name a few, will all be handing down numbers.
Outside of reporting season, APRA has increased the capital add-on requirement for ANZ (ASX: ASX) to AU$750 million, ramping up its regulatory oversight following the lender’s recent admission of misreported bond trading data which saw ANZ suspend several traders form its markets division amid allegations of misconduct.
In response, ANZ says it has acknowledged APRA’s concerns and is expediting work already underway to address the issues raised. Shares are lower in today’s trade but up 15.6% this year, as of last close.
Going global
To the global stage, equities around the Asian region are cautious ahead of FOMC Chair Jerome Powell’s key speech at Jackson Hole tonight. Tokyo’s Nikkei 225 has edged higher amid a weaker yen, though gains were limited as tech stocks followed U.S. peers lower. On the data docket, Japan’s core CPI read rose to 2.7% in July taking the annual rate to a sticky 2.8%.
MSCI’s broadest index of Asia-Pacific shares outside of Japan has also slipped but is headed for a weekly gain of 0.6%.
US futures are back online with both the S&P and Nasdaq pointing to a modest uptick at the start of the US session.
Finally, to currencies, the US dollar remains steady ahead of those comments from Jerome Powell, while the yen remains in focus. It comes as Bank of Japan (BoJ) Governor Kazuo Ueda looked to soothe lingering nerves after a surprise rate hike last month saying while global markets remain unstable the central bank “will be highly vigilant to developments for the time being” but added it was ready to raise rates again if the economy and prices move in with forecasts.
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