In his Monday morning report, Austin Mitchum, senior market analyst at First Prudential Markets, notes that the market is pricing in a strong set of numbers and a dividend increase as the major banks prepare to report their earnings. However, he reminds investors that back in May, when the major banks came out with very strong earnings and surprise dividends, the stocks surged but were immediately sold into. Stocks top out on bullish euphoria just as they bottom on pessimism, according to Mitchum. CBA is due to report earnings tomorrow, however, any number below expectations will drag the rest of the sector lower. He reiterates the key support levels for the majors: ANZ 2900, NAB 3000 and WBC 3000. (VIEW LINK)
Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.
No areas of expertise