A number of factors will feed into investor outlook this morning. These  include  yesterday’s selling momentum; the escalating US  rhetoric  over North Korea;  a slightly softer iron ore price and market reaction to CBA’ s profit result

CBA has unveiled a clean result that’s largely in line with consensus expectations. Despite the fact that it’s a record headline number, the declining return on shareholder equity reflects easing business conditions for banks.

 The question is whether CBA’s in line result will be good enough to attract bargain hunters given recent selling and the legal and regulatory risks arising from the Austrac situation. The chances are that any buying support for the stock this morning will be reasonably limited.

There has only been minor support for safe haven assets like Gold and the Japanese Yen following President Trump’s threats to North Korea.  This suggests stock market investors will continue to take a wait and see stance on this situation at this stage. 

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.