2330 GMT - Macquarie now expects Australian house prices to fall 10% from their peak, and that's bad news for investors in retail banks betting on their share-price performance improving. Macquarie thinks the RBA will raise interest rates again this month. Other macro headwinds for banks include unemployment edging up and weak confidence. "Importantly, with low cost deposits now largely hedged, we think the direct impact of further hikes on banks has become negative, with further hikes weighing on credit growth and credit quality," says Macquarie. It stays "underweight" the sector, with ANZ and NAB its preferred exposures.
- Like
- Comment
- Favorite
Falling House Prices, Looming Rate Hike to Extend Australian Bank Underperformance
Dow Jones09-09 07:30
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Like
Report
Login to post
No comments yet