Market round-up: Q4FY17 profit growth at 11-quarter high
In other news, US job openings surge to record level; global growth headed for six-year high, says OECD
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Aggregate profit after tax of 206 companies tracked by Motilal Oswal Securities Ltd grew 28.7% on a year-on-year basis in the March quarter of fiscal year 2017 (Q4FY17). Profit growth of these companies exceeded the brokerage firm’s estimate of 23.3% and reached an 11-quarter high. The growth was driven by cyclicals and as the impact of demonetisation faded, there was a rebound in revenue growth of FMCG (fast-moving consumer goods) and automobile companies, said the report. “However, looking beyond the numbers, the underlying operating performance still doesn’t exhibit broad-based strength. 42% of our universe reported profit decline versus 34% in 3QFY17,” added the brokerage firm.
US job openings surge to record level
US job openings surged to a record high in April and employers appeared to have trouble finding suitable workers, pointing to a tightening labour market that could encourage the Federal Reserve to raise interest rates next month. The Labor Department’s monthly Job Openings and Labor Turnover Survey (JOLTS), published on Tuesday, also suggests that a recent moderation in job growth could be the result of a skills mismatch rather than easing demand for labour. JOLTS is one of the metrics on Fed chair Janet Yellen’s so-called dashboard of labour market indicators. It came ahead of the US central bank’s 13-14 June policy meeting, at which it is expected to raise its benchmark overnight interest rate by 25 basis points. Job openings, a measure of labour demand, increased 259,000 to a seasonally adjusted six million in April, the highest since the government started tracking the series in 2000. Reuters
Global growth headed for six-year high: OECD
The global economy is on course this year for its fastest growth in six years as a rebound in trade helps offset a weaker outlook in the US, the Organisation for Economic Co-operation and Development (OECD) forecast on Wednesday. The global economy is set to grow 3.5% this year before nudging up to 3.6% in 2018, Paris-based OECD said, updating its forecasts in its latest Economic Outlook. That estimate for 2017 was not only a slight improvement from its last estimate in March for 3.3% growth, but it would also be the best performance since 2011. Yet, despite this brighter outlook, growth would nonetheless fall disappointingly short of rates seen before the 2008-2009 financial crisis, OECD secretary general Angel Gurria said. Reuters