*IS A RECESSION COMING? INVESTORS TURN TO EARNINGS FOR CLUES -
) SA hiked some prices last month by 7% versus February. But that could come under pressure if management commentary suggests a slump in sentiment is translating into lower demand, strategists said.
As consumers cut costs by opting for cheaper staples, which have lower margins to begin with, companies that sell to the mass market are likely to struggle the most, said Marija Veitmane, senior strategist atEven banks, which generally benefit from rising real yields, will find it hard, Veitmane said, as “the flatness of the yield curve could negate the benefits of rising interest rates and keep net interest margins low.
“Some companies might use the general gloom as cover for any bad news that’s been lurking in the shadows,” said Danni Hewson, financial analyst at AJ Bell.