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)
Disclaimer: 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. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
