3 things ASX investors should watch this week

For the sake of your stock portfolio, look out for these developments over the next few days.

| More on:
Two men and woman sitting in subway train side by side, reading newspaper

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The final days of the ASX reporting season are now upon us, so there is plenty of data for investors to digest.

Amid the information overload, don't forget to monitor these events that could impact your ASX shares:

1. Australia monthly inflation

The January consumer price index statistics will be released on Wednesday, which will have a big impact on what the Reserve Bank will do with interest rates.

"Expectations are for inflation to rise 3.5% year-over-year, stalling slightly from January's 3.4% and snapping a streak of continuous easing," said eToro market analyst Josh Gilbert.

"Market pricing has shifted in recent weeks, but June is still the first meeting where the expectation is a cut."

The great news for consumers, mortgage holders, and ASX shares is that economic data has recently been coming in as the RBA predicted.

Gilbert reckons this provides "the potential for three cuts" this year.

"This week, the ABS also reported that Australians experienced the highest recorded rise in wages in almost 14 years, and the first significant pay increase in nearly three years," he said. 

"This marked the first time since March 2021 that wage growth outpaced inflation — a welcome figure that many Australians will be hoping continues in 2024. "

2. Coles results

One of the big S&P/ASX 200 Index (ASX: XJO) reporting season events will take place Tuesday morning when Coles Group Ltd (ASX: COL) reveals its numbers.

The market will be especially interested after its supermarket rival Woolworths Group Ltd (ASX: WOW) last week copped a $781 million loss.

"Similar to Woolworths, Coles is also expected to report declining profits, but revenue is set to grow at the fastest pace for almost three years, which may prove to be a silver lining."

With the social contracts of big business under political scrutiny, the grocery giant will walk the tightrope.

"Coles has experienced intensifying scrutiny over the past couple of months, with an influx of media interest and the Australian government directing the ACCC to review prices and competition in the supermarket sector following accusations of price gouging," said Gilbert.

"Balancing profitability alongside customer relations is no easy task, and this will be an ongoing challenge for Coles," 

3. Flight Centre results

Wednesday will see travel agent Flight Centre Travel Group Ltd (ASX: FLT) make its contribution to reporting season.

Gilbert pointed out how the COVID-19 pandemic forced the company to slim down, which ended up a blessing in disguise.

"Around 15,000 staff were laid off in a bid to greatly reduce costs. 

"This appeared to be a good move for the company, with Flight Centre announcing solid results for FY23, reporting revenue that was up 126% to $2.28 billion, and EBITDA rising by 260% to $300 million."

Travel demand remains high, according to Gilbert, but the wind has been taken out of sky-high airfares from 2023.

"Investors will be focused on future guidance given that the market expects solid profits for the full year that have not been since the pandemic.

"Any shift away from current guidance will put shares under pressure, but reaffirming guidance will put shares on the front foot."

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Top ten gold trophy.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured a sour end to the trading week today.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.

3 ASX shares that could walk away winners from the 'Future Made in Australia Act'

Life is a whole lot easier when money is being thrown your way.

Read more »

Two excited woman pointing out a bargain opportunity on a laptop.
Dividend Investing

With 8%+ dividends, how long can these ASX 200 passive income shares stay cheap?

I think ASX 200 investors looking for ‘cheap’ passive income shares will want to check these out.

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Avita Medical, Cettire, Domino's Pizza, and Star shares are falling today

These ASX shares are having a tough end to the week. But why?

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Boral, FBR, Origin, and Regis Resources shares are pushing higher today

These ASX shares are ending the week positively. But why?

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Broker Notes

Up 15% in 13 days, is it too late to buy South32 shares?

South32 shares have risen 1%-plus per day for the past 13 trading days. Have investors missed the boat?

Read more »

Animation of man and woman shaking hands on a deal on top of gold coins.
Mergers & Acquisitions

Which ASX companies are deploying dividends to secure a $1.9 billion deal?

Dividends appear to have sealed the deal for an ASX mega-merger.

Read more »