Investors are in for another volatile week. Last week’s market upheaval is just the start with fears of inflation rising, a wages explosion in the US and rising interest rates worldwide continuing for the next few months.
ASX futures are at -.05 per cent, pointing to a soft start to trading on Monday after a record $23.9 billion was withdrawn by investors from US stocks in the last week, according to data from Thomson Reuters Lipper Unit.
It was a week of turmoil in global stock markets that saw traders shun equities in favour of perceived safe havens like money markets
“We’re seeing a flight to safety here, money leaving equities, a lot of money going to money markets,” Pat Keon, senior research analyst for Lipper, told Reuters.
The US stock market ended its worst week in two years with the S&P 500 falling 5.2 per cent in the week, its steepest slide since January 2016.
Selling in Europe and Asia wiped more than $5 trillion from the value of global stocks in the five days.
The market correction is primarily because of concerns about the bond market, inflation and the Fed raising interest rates sooner than expected.
All this sent shock waves to the Australian market which closed 52.7 points down, capping off the worst week of trading since January 2016.
For investors this week, much attention will be placed on the NAB Business Survey on Tuesday, providing an insight into how business is travelling.
Equally as important will be the labour force figures on Thursday.
On Friday, RBA governor Philip Lowe will appear before the House of Representatives’ Standing Committee on Economics
RBA Assistant governor Luci Ellis will be speaking in Sydney on Tuesday.
And of course the profit reporting season continues with Ansell, Aurizon, Bendigo and Adelaide Bank, JB Hi Fi, Boral, Challenger, Cochlear, GPT,Reckon, Aveo, Computershare, CSL, Domino’s Pizza, Dexus, Goodman Group, Orora, Woodside, ASX, Evolution Mining, Healthscope, IOOF, Newcrest, Sonic, Suncorp, Telstra, Treasury Wine Estates, Vocus, IAG, Medibank Private, Origin, Primary Healthcare and Whitehaven Coal posting results this week.