FNArena’s Weekly Insights – August 06 2019
Coming into the August reporting season Australian equities had enjoyed seven months of uninterrupted gains, despite more than 250 profit warnings from ASX-listed companies and with underlying corporate profits (ex-iron ore miners) negative and in decline.
But central bankers are cutting interest rates and reassuring investors they remain ready to act whenever necessary. Combine all of the elements and it was always going to be an open question as to how investors would respond to benign profit results and (most likely) cautious guidance from Australian companies.
