Share Markets

A volatile day on Wall St

8.3.22 The rolling financial impact of the Russian invasion of Ukraine has torn through northern hemisphere markets today and delivered a relatively mild sideswipe to NZ’s sharemarket. As at 2.30pm the NZX50 was at around 11,786.27, down 127 points, and had been higher at 12.30 pm (11,830). It does amount to a 1.07% knock. That can be favourably compared to the -2.37% fall of 797.42 points incurred by the Dow Jones index on Wall Street overnight. On the NYSE, shares in global companies fell...

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Massive rally in global rates

Risk appetite has soured and some turmoil in money markets is flowing through into bond markets, resulting in a massive rally in global rates, according to BNZ Markets. Global equities are much weaker and the VIX index has risen to its highest level in over a year. Oil prices are surging to fresh highs, says senior markets strategist Jason Wong. Downward pressure remains on European currencies, while the other majors are fairly well contained. The NZD has performed well under the circumstances...

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Market report 25.2.22

      After the broad equity sell-off in the initial shock realisation that diplomatic denials can still become brutal facts in the 21st Century, global markets went back up today. Wall Street’s Dow Jones industrial average managed a wan 92.07 point gain at 33,223.85, which was just a slice of the fall on Thursday NZT. London’s FTSE-100 rallied almost exactly the same, up 93 to 7.301.23. And in New Zealand the NZX50 rallied 190.83 at 11,923.38. A few hours after markets closed...

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Markets react to Russian move

23.2.22 Risk sentiment has improved since the NZ close, as the world tries to assess Russian President Putin’s next move, after his first step towards a war with Ukraine, says BNZ Markets. US equities are down for the day, but not as much as early trading in futures suggested. The US 10-year rate has headed back up towards the 2% mark. The NZD, AUD and EUR have outperformed overnight, with the NZD up to 0.6750 ahead of the RBNZ MPS today. BNZ Markets senior markets strategist Jason Wong says,...

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City of London matches market

21.2.22 City of London’s net asset value total return was 6.9%, slightly ahead of the index benchmark and the averages for the UK equity income investment trust and OEIC sectors. Net asset value (“NAV”) per ordinary share for the first half year of 2021 is 404.4p, compared with 2020’s 387.6p. UK equities continued to benefit from the recovery in corporate profits and dividends and produced a total return of 6.5%, as measured by the FTSE All-Share Index. The UK economy, benefiting from very...

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Market risk appetite improves

16.2.22 The fear of war between Russia and Ukraine has subsided a little on fresh developments, seeing a lift in risk appetite, driving up global equities and global rates and a chunky fall in oil prices, says BNZ Markets this morning. Currency movements have been modest, but the NZD and AUD show small gains while, not surprisingly, the euro has outperformed, notes Jason Wing, senior markets strategist. The market has been focused on geopolitical news around Russia and the Ukraine of late and...

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Equity markets weaker

4.2.22 US sharemarkets were weaker on Thursday, dragged lower by technology stocks. In response to weak earnings guidance, shares in Facebook owner, Meta Platforms, fell by 26.4%. CommSec reports shares in Amazon fell 7.8% ahead of its earnings results. At the close of trade, the Dow Jones index was down 518 points or 1.5%. The S&P 500 index lost 2.4%. And the Nasdaq index fell by 539 points or 3.7%. “European sharemarkets were weaker on Thursday in response to weak US technology sector...

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Plunge in Meta Platform value

4.2.22 Technical stocks reeled in conjoint misery as shares in one of the global equity giants Meta (formerly known as Facebook) plunged on a worryingly lower results. Earlier today, NASDAQ was down 2.6%, giving back some its recent strong rally, while the S&P500 is down 1.7%. Social media giant Meta reported a decline in daily active users for the first time which saw its share price collapse 26.50% to US$237.41 (subject to updating) which is a wipe-off of $225bn in equity value. CNN...

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Hawkish tone gets louder

4.2.22 The hawkish shift among global central banks continues. BNZ Markets reports that European rates have spiked higher overnight, and the EUR is much stronger, after ECB President Lagarde refused to rule out a rate increase this year. Nick Smyth comments “ In the UK, four Bank of England MPC members voted for a 50bps rate increase at its meeting overnight (the five other members voted for 25bps). “Higher UK and European rates have flowed through to higher US Treasury rates and we should see...

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NZ dollar consolidates position

3.2.22 Market moves have been relatively modest overnight ahead of the ECB and Bank of England meetings tonight and nonfarm payrolls on Friday night, notes BNZ Markets. “US equities have pushed slightly higher while the US 10-year rate has drifted lower,” says Nick Smyth. “The NZD and AUD have consolidated after their strong gains over the past few days.  NZ rates moved lower yesterday after the HLFS labour market data weren’t as strong as some had feared.” Equity markets continue to recover...

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Stunning Wall Street rise out of sell-off

25.1.22 Financial markets have been through a wild and dramatic night (NZ time) as equity traders unbundled stocks on to the US and London stock exchanges only to reverse upwards in the last hour of trading. At one point the US NYSE market looked likely to be in a dive of 1,000 points. But the sell-off was then seen as a buy opportunity. The Dow Jones has remarkably closed up 99.13 points at 34,364.52. CNN reported a “stunning turnaround just before the closing bell.” Stocks began the day with...

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Pressure on equities – Kiwi lower

After last week’s notable selloff in global equity markets, selling pressure has intensified overnight, notes BNZ Markets. The belief that Russia/Ukraine are on the brink of war is adding to investor concerns, alongside the expectations of a slower global economy and tighter global monetary policy, according to Jason Wong, senior markets strategist. “As we go to print, US equities are down in the order of 3-3½%, following a near-4% slump in European equities. Bond markets show a fairly muted...

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Burberry weaves a strong quarter

20.1.22 UK apparel exporter Burberry Group plc reported strong underlying revenue performance in the third quarter, building on the progress made in its first half-year. Burberry is a global luxury brand with a distinctly British attitude. At 25 December 2021, globally Burberry had 218 retail stores, 150 concessions, 58 outlets and 39 franchise stores, excluding pop up stores. Burberry is listed on the London Stock Exchange. The latest share price is 1,883 pence. "Full-price sales continued to...

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Burberry brightens UK market

20.1.22 Burberry shone on the London market overnight and European sharemarkets ended higher. Reuters reported that "positive earnings from the luxury goods sector and strong commodity prices helped investors momentarily look past concerns over rising interest rates." British luxury brand Burberry rose 6.3% with full-price sales up in the third quarter. Higher iron ore prices lifted the mining sector by 2.7%. The pan-European STOXX 600 index rose 0.2%. The German Dax index also rose by 0.2%...

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Defensive tilt for Bankers

China detracts from Bankers' result   18.1.22 Bankers Investment Trust reports underperformance against benchmark for the October 31 year, which chairman Sue Inglis said is disappointing - yet BIT still increased net asset value by 26.5% and once again increased dividend. Over several years, Headliner has tracked Bankers as one of the best performing investment outfits for sustained performance and sound common-sense in its decision-making. As Inglis quickly added, the company is a...

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QANTAS trims capacity as Omicron spikes

Qantas (QAN) shares finished up 0.2% to $5 after informing the market of an adjustment to their flight capacities. The airliner has responded to the recent spike in Omicron virus infections by reducing domestic and international flight capacities by a third, noted CommSec.  It now expects domestic and international flight capacity to be 70% and 20% of pre-Covid levels respectively. Qantas and Jetstar are adjusting flying levels to better match travel demand in light of the sudden growth in...

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Hawkish tone bumps US market

6.1.22 US sharemarkets fell on Wednesday on 'hawkish' minutes from the last Fed meeting, focusing on removal of monetary stimulus, notes CommSec. “Real estate fell 3.2% and technology fell 3.1%.The Dow Jones index fell by 393 points or 1.1% from record highs. The S&P 500 index fell 1.9%. And the Nasdaq index fell by 523 points or 3.3%. “European sharemarkets rose on Wednesday led by autos (up 2.7%). Shares in BMW rose 2.2% after reporting record sales for the BMW brand in 2021. Mining rose...

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American markets open easier

  5.1.22 US sharemarkets were mixed on Tuesday. Banks rose 3.5% in response to higher bond yields. But growth stocks, especially in the technology sector, fell notes CommSec. “Shares in Ford rose 11.4% after doubling annual production capacity for its F-150 electric pickup. The Dow Jones index lifted by 215 points or 0.6% to record highs.” The S&P 500 index fell by 0.1% from record highs. And the Nasdaq index fell by 210 points or 1.3%. “European sharemarkets rose on Tuesday. Banks...

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US gain in risk-off backdrop

20.12.21 The US curve was flatter on Friday and the US dollar stronger amidst a risk-off backdrop and more hawkish rhetoric from Fed officials, comments Nick Smyth at BNZ Markets. The NZD ended the week back near its lows for the year, at around 0.6740. “In news over the weekend, the Netherlands has announced a new lockdown in response to Omicron while Biden’s signature Build Back Better fiscal bill now looks like it will struggle to pass the Senate after moderate Democrat Joe Manchin...

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Tech stocks fall- Musk a seller

15.12.21 US sharemarkets tumbled on Tuesday as mega cap technology shares moved lower and new inflation data continued to show a sharp rise in prices. CommSec reports that Tesla shares sank 0.8% after CEO Elon Musk sold another US$906.5 million in shares. Ford shares dropped 1.9% on news that Toyota will be investing US$35 billion in electronic vehicles by 2030. Adobe (-6.6%), Microsoft (-3.3%) and Apple (-0.8%) shares were all lower. At the close of trade, the Dow Jones index fell by 107...

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MARKETWEEK:      NZ market drifts on while Wall St wobbles

  5.12.21 Warren Head The Kiwi sharemarket continued to tire into the twilight of a very gruelling year in which equities investors have been alternatively gung-ho or gun-shy and show no signs of nerves settling now that the latest Covid variant, Omicron, raises the spectre of another episode of uncertainty. Against this backdrop, the NZX has probably done well to merely drift and we can attribute this to a strongly trending economy. The NZX-50 has trudged to a weekly close of 12,676.50,...

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MARKETWEEK: Unwelcome variant ‘Omnicron’ spooks markets

WARREN HEAD   Financial markets are in turmoil this weekend in response to a new Covid variant that has already see the UK slam shut its border to travellers from half-a-dozen southern African countries. The emergence of the new variant of the Covid virus in South Africa a few days ago quickly had alarms going off in Europe.  Initially identified coded B.1.1.529 it is now ominously named Omnicron. Still with a small incidence of cases, it has been elevated by the World Health Organisation...

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Whopper nickel find in WA

9.11.21   Chalice Mining (CHN) soared 28.5% to A$8.70 after announcing what it claimed was the largest nickel sulphide discovery in the world in over 20 years. report its maiden Mineral Resource Estimate (Resource) for the Gonneville Deposit (Deposit), the first discovery at its 100%-owned Julimar Nickel-Copper-Platinum Group Element (PGE) Project, located ~70km north-east of Perth in Western Australia. The company has defined a tier-1 scale, pit-constrained maiden Resource for Gonneville...

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Wall Street reports disappoint

28.10.21 US sharemarkets were mixed on Wednesday after a slew of earnings reports. Shares of Microsoft (+4.2%) hit a record high after earnings beat analysts' estimates, noted CommSec. “Google-owner Alphabet jumped 5% after reporting a record quarterly profit. McDonald's (+2.7%) and CocaCola (+1.9%) shares climbed after positive results. “But General Motors shares fell 5.4%, despite topping Wall Street's earnings and revenue estimates. “And updates from Twitter (-10.8%), Visa (-6.9%), Texas...

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Rates driven rout on NYSE

29.9.2 The US stockmarket is continuing to react negatively more frequently to the threat of rising bond yield. Earlier today (NZ Time) the NYSE market closed well down. The Dow Jones dropped 569.38 to 34,299.99 after what Bloomberg described as a ‘rate-fuelled rout.” Oil prices hit a 3 year high before easing off swiftly, SWTI at US$73.89 a barrel. The tech heavy Nasdaq was lower. US stocks were dealt with sternly by sellers overnight as long term interest rates continued to trend higher,...

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NZX escapes market rout (Updated)

21.9.21   Equity markets across the globe took a deep breath and then plunged into some of the deepest depths of the year to day – rattled by the impending collapse of a Chinese property behemoth with shaky foundations. Evergrande is a household name for thousands of Chinese but less so globally. But like another giant ship with an ‘Ever’ in its name, it is about to be a mainstream news item of considerable interest. The Chinese have been building skyscrapers for years on debt-ridden...

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S&P Dow Jones indices hit records

2.8.21 July brought new all-time highs for the S&P/ASX 200 which was lifted by the Materials sector in particular, says Tim Edwards,  managing director, Index Investment Strategy, at S&P Dow Jones Indices. July finished 1% after gains in the largest Australian equities helped heave the benchmark higher. S&P Dow Jones Indices released the Australia and New Zealand Index Dashboard for July 2021 Larger stocks also outperformed in New Zealand: the S&P/NZX 10 finished flat as the...

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Markets brush off weaker US GDP

  30.7.21 The market brushed off a weaker-than-expected US Q2 GDP result overnight, with equities higher across the board and US rates nudging up, says Nick Smyth at BNZ Markets. The USD has continued to weaken amidst ultra-low US real rates and improving risk appetite.  The NZD is back above 0.70 and has made gains on all the key crosses. The US GDP release has been the main market focus overnight.  The headline result, annualised quarterly growth of 6.5% in Q2, was well below the...

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Chinese market turmoil spills out

28.7.21 China’s regulatory crackdown has spilled over into other markets, driving a fall in risk appetite, with US equities down as much as 1-2%, dragging the US 10-year rate lower, says Jason Wong at NZ Markets. Commodity currencies have underperformed and a much weaker CNY has done no favours to the NZD and AUD on a day in which even the USD has underperformed. China seems to be the key market theme this week. Yesterday we reported on China’s regulatory crackdown on companies that has...

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MARKETWEEK: Digging deeper for equity opportunities

3.7.21 Warren Head Equity investors in New Zealand are coming to the realisation that the days of dazzling investment fundamentals are slipping away. At an annual meeting this week, an experienced investor told me he was finding it harder to find any shares that gave him half-decent fundamentals. It was a good point. The NZX board, at a glance, looks very well priced. There are now a mere handful of listed issuers that present dividend yields higher than 6% - the highest is LIC at 10.99%. For...

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