The Week Ahead
12 February

The Week Ahead – 12 February

Financial markets were mixed over the week. While the ASX200 Index was flat, global equity markets on the back of stronger US markets that saw the S&P500 Index (+1.7%), NASDAQ Index (+2.5%) and the small/mid cap Russell 2000 Index (+3.8%) sharply higher were able to continue the recent rally.

With the US market through the back end of its 4q23 reporting season, overall earnings growth remains sound. This has continued to propel US markets higher as the market looks to the US Fed to begin to cut rates through the 2h24.

Locally, the 1h24 reporting season kicks off in earnest this week. Results to date have been generally well received and while we have seen a softening in the 12mth forward earnings outlook (EPS est), the Aust equity market has been able to follow global markets higher.  Given the recent rally, we believe a period of consolidation is most likely if results are flat with few upgrades to earnings expectations.

Domestically, this week will see the release of Jan employment numbers.  While the market is forecasting a slight increase in the jobless rates (f’cst 4.0%, +0.10%, pcp) the overall resiliency of the employment market remains.

In the US, the focus will be on Jan CPI data, with expectations of a further moderation in the inflationary outlook (f’cst 2.9% y/y, -0.5% pcp).  In addition to the release of CPI data, retail sales, building permit numbers and PPI data for January will also be closely watched by the market.

UK CPI data is also set for release (f’cst 4.1%, +0.15 pcp) along with industrial production figures that are likely to highlight ongoing expansion (f’cst +0.6% y/y, -0.7% pcp), albeit at a slower pace, while in Europe, the release of the 4q23 GDP figure (f’cst +0.1%) will highlight a more benign economic environment.

In Asia, Japanese PPI data in addition q/q GDP figures will continue to point to robust economic activity.  While there is little economic data set for release this week in China due to Chinese Lunar Year, it will provide some relief to the Chinese government given the challenges currently facing the economy. But with the potential for the woes in the property sector to spill over into other regional markets, there are few signs of stability.

This post has been prepared by Infinity Capital Solutions Pty Ltd (ABN 41 621 447 345) (AFSL Number 515762) (ICS). By reading or otherwise attending this presentation, you (the reader, recipient, or attendee) agree to be bound to the below terms and conditions.

This post and any supporting materials may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we may have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement and/or Target Market Determination before making any decision to purchase that financial product. The material in this post is correct and complete as of the date it was posted. Infinity is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this post.



To find out more about working with Infinity, contact us today.

Sign up to receive market insights.