The Australian sharemarket is expected to open lower on Monday as investors brace for one of the busiest weeks of the year for domestic corporate results, while an ongoing stalemate in the Middle East conflict and growing expectations of another Reserve Bank of Australia interest rate hike weigh on sentiment.
S&P/ASX 200 Index futures pointed to a 0.4% decline at Monday's open, extending last week's losses after more companies missed profit expectations than exceeded them.
JB Hi-Fi Group reported a 4.3% increase in sales and a 5.8% rise in earnings before interest and tax, in what was described as an exceptional result given current market conditions.
Group CEO, Nick Wells noted: “We are pleased to report record sales and solid earnings for FY26. In an uncertain retail environment where customers are seeking value, our brands continued to resonate and our teams continued to execute to a high standard.”
United States benchmarks closed modestly lower on Friday as investors digested weaker-than-expected economic data, concerns over elevated valuations among AI-related companies and renewed Middle East tensions.
The Dow Jones Industrial Average fell 0.2%, while the S&P 500 declined 0.2% and the Nasdaq Composite dropped 0.3%.
On the economic front, U.S. retail sales fell 0.6% in July following an unrevised 0.2% increase in June, according to the Commerce Department's Census Bureau. The result was weaker than economists had expected.
Separately, the University of Michigan's preliminary consumer sentiment index fell to 51.0 in August, below expectations of 54.5.
The Australian sharemarket also declined on Friday, with weakness in mining stocks weighing on the benchmark.
The S&P/ASX 200 fell 73.3 points, or 0.8%, to 9,115.2, with six of the 11 sectors finishing lower. The index declined 1.6% over the week.
Ahead in the week, investors will focus on wage price index data due on Wednesday and labour force figures scheduled for release on Thursday, with both reports likely to influence expectations for the RBA's next policy move.
On the bond markets, 10-year and two-year rates rose 0.5% and 0.4%, respectively, to 4.987% and 4.581%.
