Select the account you'd like to open


Markets ignore nukes; focus on profits

The ASX 200 has responded to a positive lead from the low volatility US stock markets this morning.

Traders are today contemplating the possibility that a 2% pull back based on the threat of nuclear war may be about as dire as things get for US stock markets for a while. US investors have found it difficult to ignore the potent combination of strong profit growth; low bond yields and a lower US Dollar, providing a positive lead for the local stock market today.

ANZ has joined NAB with a solid report on June quarter earnings. Management continues to do a good job on productivity and positioning the bank for a low growth environment.

The sharp drop in Domino’s Pizza’s share price this morning in part reflects the risks faced by highly valued growth companies that miss expectations. However, it also reflects concerns over whether markets have been too optimistic about the company’s long term growth prospects given solid competition in a mature fast food market.

Weakness in the oil price has confirmed $US50 as a barrier for US oil at present. The energy sector is a drag on the ASX 200 this morning as traders adjust to a less optimistic short term outlook for oil.  

Sign up for market update emails