Good morning,The four majors were quick to pass on the Reserve Bank’s rate hike on Wednesday, but the profit boost is likely to be short-lived, according to a number of analysts who spoke to Cameron England . As he reports today, a drop in mortgage originations as interest rates climb higher – and a crimp on housing market activity – is likely to hit earnings. And that’s before increasingly intense competition is factored in. Credit losses, at least, will remain low, according to S&P Global Ratings. On Wall Street, stocks gained on the US Federal Reserve's resolve on inflation, indicated by its latest meeting minutes. According to JP Morgan, the ASX 200 delivered the largest outperformance of global markets since 2005. Some, like Wilson Asset Management portfolio manager Matthew Haupt say this is largely down to strong resources prices – now on the way down – and a comparatively dovish RBA. A “real tale of two halves” is how James Posnett, the ASX’s general manager of listings, put activity on the exchange for the last financial year. |