Macquarie holds steady

On Thursday, diversified financial services company Macquarie Group (ASX: MQG) reaffirmed its earnings guidance at its annual general meeting. The company reported improvements in commodities and global markets trading activity, increased lending in its corporate and asset finance division and greater debt capital markets activity. We believe the short-term outlook for the banking sector has improved following the Australian Prudential Regulatory Authority’s positive definition of ‘unquestionably strong’ last week. However, with continued political pressure on the sector, the long-term outlook remains unclear. Macquarie Group shares closed down 0.5% for the week. We own Macquarie Group as a market-driven investment in WAM Leaders and Century Australia.