Last week was a disappointing one for Australian investors. Rising COVID-19 cases globally spooked global markets and sent the S&P/ASX 200 Index (ASX: XJO) tumbling 3.9% lower to finish at 5,927.6 points.
Next week promises to be another eventful one, with plenty for investors to focus on. Here are five things to watch:
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U.S. election.
The U.S. election looks set to dominate the headlines next week. A result is expected to be declared during the trading day on Wednesday. This could make it a volatile day of trade, as investors position their portfolios for a particular result. At present, Joe Biden is tipped to oust Donald Trump from the top job. However, as we have seen previously, it would be foolish to rule out a Trump victory. The current President is unlikely to go down without a fight and may challenge an unfavourable outcome. As for Monday, the latest SPI futures are pointing to the ASX 200 opening the day 52 points higher.
Westpac full year results.
The Westpac Banking Corp (ASX: WBC) share price will be in focus on Monday when it releases its full year results. A note out of Goldman Sachs reveals that it expects the big four bank to post cash earnings before one-offs of $2,535 million. This will be a sizeable 63% decline on the prior corresponding period. The broker has also pencilled in a final dividend of 25 cents per share.
Reserve Bank meeting.
The Reserve Bank is due to meet on Tuesday to discuss the cash rate. The central bank is widely expected to cut rates at this meeting. The economics team at Westpac has forecast a cut down to 0.1%. It believes this will be part of another stimulus package to boost the Australian economy. Elsewhere, the latest cash rate futures are pricing in an 84% probability of a cut to zero.
NAB full year results.
On Thursday all eyes will be on the National Australia Bank Ltd (ASX: NAB) share price when it hands in its full year results. According to another note out of Goldman Sachs, it is expecting the banking giant to post cash earnings before one-offs of $3,988 million. This will be a 31.9% decline on the prior corresponding period. Goldman has forecast a fully franked final dividend of 30 cents per share, which will bring its full year dividend to 60 cents.
SEEK to return from trading halt.
On Monday the SEEK Limited (ASX: SEK) share price is scheduled to return from its trading halt. SEEK requested a trading halt late last week while it prepared a response to a short seller report issued by Blue Orca Capital. The offshore short seller has alleged that SEEK's China business is full of fake listings and resumes. It believes SEEK's shares are worth just $7.20. This compares to its last close price of $21.51.
