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16-10-19<\/em><\/p>\n From George Lucas, Raiz CEO<\/p>\n <\/p>\n In the US, Q3\u00a0earnings season\u00a0kick offs in earnest and stocks are bracing for a third straight quarter of falling earnings, which would make it the longest streak in more than three years. S&P 500 companies are expected to report around a 4.1 per cent fall in earnings per share, following a 0.4 per cent drop in the second quarter and a 0.3 per cent dip in Q1.<\/p>\n It\u2019s not uncommon for expectations going into earning seasons to be underestimated — so it\u2019s possible that the current 4.1 per cent expectation could be beaten. Drivers for the drop in profits include rising labour costs and input costs as well as the rising US dollar, which serves to cut earnings as 40 per cent of S&P 500 companies\u2019 sales come from overseas.<\/p>\n Energy and tech sectors are expected to be worst hit. Still, you wouldn\u2019t know the dim outlook is around the corner from looking at the market right now. The S&P 500 stock index has remained near record highs since hitting an all-time high in July, supported by falling interest rates and hopes that peace could be brokered in the global trade war.<\/p>\n \u00a0<\/strong><\/p>\n On a more upbeat note, this week saw the University of Michigan measure of consumer confidence rebound, with the survey hitting a three-month high of 96.0 for October. This bodes well for consumption growth and indicates that US consumers are not stretched at the moment.<\/p>\n On the political side, investors will be closely watching US impeachment proceedings, with polls showing support for impeaching US President Donald Trump rising above 50 per cent. The complaint against Trump centres on a phone call with Ukrainian counterpart Volodymyr Zelensky in which Trump is said to have asked for help investigating former Vice President Joe Biden.<\/p>\n There\u2019s also the ongoing US-China trade stoush. Current talks have resulted in a \u201cmini deal\u201d, with China agreeing not to manipulate its currency and to buy more US agricultural goods. In return, the US would delay additional tariffs and ease restrictions on Chinese firms. While this appears a positive step, previous impermanent truces suggest that this one too may be unlikely to last long.<\/p>\n \u00a0<\/strong><\/p>\n Across the Atlantic, the chances of UK Prime Minister Boris Johnson getting a Brexit deal before the EU summit on 17 October have risen.<\/p>\n However, a \u201cno-deal\u201d Brexit at the end of October can\u2019t be ruled out, but appears more unlikely given the \u201cBenn Act\u201d now legally obliges the Government to request a delay in such a scenario.<\/p>\n \u00a0<\/strong><\/p>\n In Australia, this week we have the monthly unemployment report which is expected to show that the jobless rate stayed at 5.3 per cent in September.<\/p>\n Elsewhere, oil prices were on the rise again through the week following reports that an explosion set fire to an Iran-owned tanker near Saudi Arabia\u2019s port city of Jeddah and caused an oil spill.<\/p>\n <\/p>\n <\/p>\n Important Note: <\/strong>The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website.<\/p>\n Investors only:<\/strong> The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products.<\/p>\n General advice warning: <\/strong>The information contained in this Document is general information only. It has been prepared without taking account any potential investors\u2019 financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.<\/p>\n","protected":false},"excerpt":{"rendered":" 16-10-19 From George Lucas, Raiz CEO Downbeat earnings outlook for US stocks In the US, Q3\u00a0earnings season\u00a0kick offs in earnest and stocks are bracing for a third straight quarter of falling earnings, which would make it the longest streak in more than three years. S&P 500 companies are expected to report around a 4.1 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[]}Downbeat earnings outlook for US stocks<\/h3>\n
US consumer\u00a0sentiment at three-month high<\/h3>\n
No breakthrough in Brexit<\/h3>\n
Aus unemployment tipped to remain steady<\/h3>\n
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