Keeping you up to date with the latest market moves, in association with Investment firm Jarden.
International
US
All major US indices declined overnight.
Jarden Brief: Freight firm gets a small fright as consumers predicted to tighten belts
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Parsimonious consumer behaviour predicted in the world's biggest economy had FedEx taking a dim view. Photo / Supplied
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At the time of writing the S&P 500, Dow Jones Industrial Average and the Nasdaq Composite were down, 0.5, 0.1 and 1.2 per cent respectively after Federal Reserve Chair Jerome Powell told lawmakers the central bank was undeterred from its goal to bring inflation down to the 2 per cent target.
Powell also made remarks that despite a recent pause in rate hikes, officials were in agreement borrowing costs would likely still need to move higher.
FedEx reported after market close yesterday. The company reported fourth-quarter net income of US$1.54 billion compared with US$558 million in the same quarter last year.
However, management has forecasted weaker demand in the months ahead, as inflation hangs on and forces customers to rethink their spending priorities.
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The share price was down 2.7 per cent at the time of writing.
Rest of the World
UK CPI data was released overnight from the Office of National Statistics.
Headline inflation remained stuck at 8.7 per cent year-on-year for May.
Core CPI (which excludes volatile prices of food, energy, alcohol and tobacco) finished at 7.1 per cent, up from 6.8 per cent in April, and the highest rate since March 1992.
Commodities
Bitcoin is up 6.4 per cent and at a two-month high of US$29,975.0 despite the recent overhang caused by US Securities and Exchange Commission’s lawsuits against crypto exchange operators Binance and Coinbase.
The recent surge is likely due to BlackRock, an American multi-national investment company, submitting an application for a spot bitcoin ETF which would track Bitcoin’s underlying market price.
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New Zealand
The NZX 50 closed 0.1 per cent lower.
Fletcher Building declined 0.2 per cent after holding its investor day.
Earnings before interest and tax guidance (ebit) was lowered to c. $800 million for the year to June 30.
The company had previously downgraded ebit guidance in February. House sales were guided to be around 650 units in financial year 2023 and between 700-800 house sales in financial year 2024.
Kiwifruit producer Seeka provided financial year 2023 earnings guidance yesterday.
The company expects a net loss before tax of $20 - $25m for the full year to December 31, 2023.
The forecast reflects much lower than anticipated kiwifruit volumes due to adverse weather events which affected all growing regions. The company finished 3.2 per cent lower, at a nine-year low of $2.45.
Australia
The ASX 200 slid 0.6 per cent, closing at 7314.9.
BHP Group closed 1.1 per cent lower after an investor presentation providing an update on the company’s progress and plans to achieve its medium and long-term operational decarbonisation target.
The company announced it was on track to reduce operational emissions by at least 30 per cent by financial year 2030 from financial year 2020.
BHP Group announced it expected capital expenditure of US$4b with the majority of spending toward the end of the decade, allowing technology to mature.
Iris Metals, a hard rock lithium exploration company, closed 29.3 per cent higher after its securities resumed trading yesterday.
The company had been suspended from quotation since December 2022.
During that time the company successfully completed a A$15m capital raise to fund the drilling and development of the recently acquired Beecher and Edison Lithium Projects in South Dakota in the United States.
Coming up today
US: Existing Home Sales, Initial Jobless Claims, Chicago Fed Nat Activity Index.
UK: BoE Bank Rate.
NZ: Trade Balance.
For more information on the latest market moves, get in touch with Jarden.
The Jarden Brief is provided for general information purposes only. It reflects views and research available at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation. We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission. The Jarden Brief is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision. Jarden Securities Limited is an NZX Firm. A financial advice disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement/.
Full disclaimer available at: https://www.jarden.co.nz/wealth-sales-and-research-disclaimer
All market pricing and announcements are sourced from Refinitiv, NZX and ASX.
