G'day folks and welcome to another trading day with your friendly, neighbourhood CMC Market Analyst!
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Trading Idea of the Day
NYSE:BAC - Bank of America - BULLISH BIAS
- During periods of interest rate rises, the difference in interest charged on interest-bearing assets like loans and the interest being paid on deposits grows known as Net Interest Margin (NIM).
- As Bank of America has seen relative growth in customer deposits and loans, a growing Net Interest Margin should mean that the company reaps the rewards.
- Although Bank of America’s Net Interest Margin currently sits at 1.69%, we should expect this to climb if the Federal Reserve continues to hike interest rates.
- However risk is, as we enter closer to a recession, we could potentially see a significant reduction in credit demand, which will become a battle between a higher NIM vs lower credit to offset each other.
ASX & Economic Key Events
ASX Key Events Calendar (TODAY)
Economic Key Events (TODAY)
Economic Key Events (YESTERDAY)
OPTO For Investors Research
Article of the Day: Walmart shares upbeat on metaverse venture with Roblox
Podcast of the Day: Market strategist Kiril Sokoloff’s thematic investment radar
APAC Daily Report
Click here to access our daily APAC report, prepared by my fellow market analyst @TinaTeng_CMC
Market Snapshot & Highlights as of 7am AEST
EXPECTATIONS: Energy LOWER (lower/nat gas) & Materials HIGHER on rising base metal prices.
Global Markets Headlines
- Toyota CEO doubles down on EV strategy amid criticism it’s not moving fast enough (CNBC)
- Apple downgrade sparks tech sell-off, sending Alphabet and Microsoft to one-year lows (CNBC)
- Nike shares fall as overstocked inventory weighs on earnings (CNBC)
- Pension fund panic led to Bank of England’s emergency intervention: Here’s what you need to know (CNBC)
- Google to shut down gaming service Stadia as CEO Pichai continues cost-cutting efforts (CNBC)
- Nintendo carries out 10-for-1 stock split to lure new investors to the Japanese gaming giant (CNBC)
- Porsche shares rise in landmark Frankfurt debut (CNBC)
- Erdogan says Turkey will keep cutting interest rates, mocks British pound (CNBC)
NATO Formally Blames Sabotage for Nord Stream Pipeline Damage (WSJ)
(All news & data sourced from AFR / The Australian / Bloomberg / Reuters / CNBC / Wall Street Journal / Morningstar / OPTO / Trading Economics)