Australian Markets Weekly: 6 June 2016
Is any week not a relatively busy or important one? This week, the key focus in Australia will be on the Reserve Bank’s June Board meeting
What are company profit trends telling us about the Australian economy?
- Company profits reveal the continuing sharp hit to mining company profits and profits in related sectors. The Australian economy is continuing to re-calibrate to post-commodity boom levels of activity. While mining profits are clearly a big drag, the non-mining recovery is impressive, with non-mining GDP growth currently running in the 3-4% region.
- Tomorrow’s RBA Board meeting text should be watched closely for any reintroduction of an explicit easing bias – as occurred in March 2015 following the easing in February 2015
- Significant market moves in the $A and Australian rates due to softer than expected US May non-farm payrolls data.
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