Latest / Best of Business / Remy Morgan: Milford Asset Management expert on the global markets' response to the Iran ceasefire

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Remy Morgan: Milford Asset Management expert on the global markets' response to the Iran ceasefire · Best of Business

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  Speaker 2: Remy Morgan Milford Asset Management is with us. Hi, Remy Hi, Heather. Now,
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  Speaker 2: all this uncertainty with what's going on with the run
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  Speaker 2: is causing a little bit of tension and stuff. How
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  Speaker 2: the global market's holding up.
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  Speaker 3: Yeah, it's a bit. It's a bit hard to keep
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  Speaker 3: up at the moment. But what I did want to
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  Speaker 3: call out is over the weekend, some of those key
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  Speaker 3: US market indices, so your SMP five hundred and your
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  Speaker 3: Nasdaq one hundred, they actually surged to new all time highs.
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  Speaker 3: And that was boosted by that initial optimism that we
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  Speaker 3: saw on a potential resolution of the conflict at the
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  Speaker 3: back end of last week. And just to put things
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  Speaker 3: into perspective, at the end of March, the S and
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  Speaker 3: P five hundred was down nine just over nine percent
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  Speaker 3: from the January high, and then by seventeenth of April
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  Speaker 3: it rebounded back over twelve percent from that dip to
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  Speaker 3: the new record high. Now, as we know, some of
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  Speaker 3: that optimism of the conflict being resolved has since been
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  Speaker 3: paired back the US markets. They've only dipped slightly and
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  Speaker 3: they're still remaining near those highs, which does suggest that
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  Speaker 3: not a lot of downside risk is currently priced in.
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  Speaker 3: But the market is also now turning its focus to
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  Speaker 3: earning season, which kicked off last week.
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  Speaker 2: So how was earning season tracking so far? Are there
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  Speaker 2: any key call outs here?
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  Speaker 3: So? We hadn't many of the US banks reporting last week.
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  Speaker 3: They mostly be expectations. But what was interesting is that
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  Speaker 3: many of those banks called out that the American consumer
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  Speaker 3: continues to remain resilient. Spending trends appear to be healthy,
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  Speaker 3: and that's despite all of this geopolitical uncertainty. And that
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  Speaker 3: was further confirmed overnight with the US retail sales data,
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  Speaker 3: which was stronger than expected. Now this morning, we had
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  Speaker 3: a couple of other names reporting, SOG, Aerospace, three M,
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  Speaker 3: and Equifax. They all beat first quarter earnings expectations, but
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  Speaker 3: they've mostly maintained their guidance given the implications and the
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  Speaker 3: uncertain of the Middle East conflict. And I think this
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  Speaker 3: will continue to be a theme that we'll see for
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  Speaker 3: some stocks throughout this earning season.
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  Speaker 2: What do you reckon? The markets are also going to
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  Speaker 2: be watching from here.
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  Speaker 3: Yeah, So next week is a very chunky week of earnings.
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  Speaker 3: We actually have thirty eight percent of the S and
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  Speaker 3: P five hundred reporting next week, and that includes those
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  Speaker 3: key names like Amazon, Google, and Meta which are part
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  Speaker 3: of that magnificent Steven cohort. Now, the market will be
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  Speaker 3: watching these very closely for updates on their AI cap
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  Speaker 3: ex spend and the outlook for AI more generally. And
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  Speaker 3: that's because these stocks they have a pretty meaningful impact
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  Speaker 3: on index performance, because they have a very high rating
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  Speaker 3: and also the tone of these results, they do have
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  Speaker 3: the potential to have a spillover impact to the broader
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  Speaker 3: tech space and to other AI related stocks.
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  Speaker 1: Yeah.
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  Speaker 2: Interesting, that's very interesting stuff. Rem thank you very much,
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  Speaker 2: really appreciate it. Remy Morgan, Milford Asset Management.
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