INTERNATIONAL
US:
At the time of writing the US markets were a mixed bag. The S&P 500 was down 0.3 per cent, the Nasdaq had risen 0.2 per cent and the Dow Jones Industrial Average was down 0.5 per cent.
The top-performing sectors of the S&P500 were Real Estate and Healthcare, which rose 1.0 and 0.7 per cent, respectively.
Biogen and Eli lily and Co led the Healthcare sector upwards.
The best performing stock was Biogen, which had surged 44.2 per cent at the time of writing. Investors responded favourably to the announcement that Food and Drug Administration approval has been granted for the pharmaceutical company's new Alzheimer's drug. This drug is the first in almost 20 years to be approved for Alzheimer's in the US. Trading was paused midway through the session because of volatility.
Another outperformer was pharmaceuticals company Eli Lily and Co, which rose 13.6 per cent. It is presently developing its own Alzheimer's drug and was pulled along in the wake of optimism after the Biogen announcement.
The sectors underperforming the most at the time of writing were Materials and Industrials, falling a respective 1.4 and 0.7 per cent.
Organon and Co was down 7.9 per cent at the time of writing. This pharmaceutical company's share price fall may be the result of a rotation today away from it and towards pharmaceutical companies involved in the development of Alzheimer's drugs.
United Rentals fell 4.2 per cent, losing some of Friday's gains. Despite this decline, United Rentals' share price is over two times the share price pre-pandemic.
Rest of the World Markets:
Asian indices were also a mixed bag overnight. The Shanghai Composite rose 0.2 per cent, the Hang Seng was down 0.5 per cent and the Nikkei returned a gain of 0.3 per cent.
Trade Data released showed China's exports rose 27.9 per cent in dollar terms in May compared to May 2020.
Commodities:
Gold rose 0.5 per cent to US$1,901.40 per ounce. The recent rise in gold price can be linked to underlying US inflation concerns, with gold typically being an inflation hedge.
Cryptocurrency moves saw Bitcoin down 0.8 per cent and Ethereum rise 0.3 per cent.
The US 10-year bond currently yields 1.567 per cent.
The oil price fell 0.4 per cent, with WTI Crude Oil trading at US$69.63.
Australian Markets:
Victoria has announced its fourth lockdown of the pandemic, after 11 new community cases were reported. The intended seven-day lockdown has some concerned, given that some of the local and federal pandemic relief efforts have been wound down. Though the trans-Tasman bubble has been paused for seven days, industry experts are not yet concerned about any lasting effect on tourism.
The S&P/ASX 200 traded down slightly yesterday with the index falling 0.2 per cent to 7,281.9 points.
Leading sectors comprised of both Real Estate and Technology, making gains of 1.9 and 0.8 per cent respectively.
Software company Altium Ltd led the way with a remarkable performance, up 39.0 per cent at yesterday's close. Altium made headlines after it received a takeover offer from Nasdaq listed Autodesk Ltd to acquire 100 per cent of its shares at a price of A$38.0. The market reacted accordingly, with shares closing at A$37.8.
Similarly, Nuix Ltd advanced 6.2 per cent, a direct benefactor from the Altium takeover offer which elevated valuations in the industry.
On the flip side, Financials (down 1.1 per cent) and Consumer Cyclicals (down 0.7 per cent) were the laggard sectors at yesterday's close.
Travel companies weighed down index performance after it was released that AUSTRAC (the Australian Transaction Report's and Analysis Centre) was conducting a series of anti-money laundering investigations into the travel industry (among others). In response, both Corporate Travel Management Ltd and Webjet Ltd traded unfavourably, finishing the day lower by 5.1 and 4.9 per cent, respectively.
ANZ Australia job advertisement data reached a 12 year high for the month of May. Job ads rose 7.9 per cent in comparison to April, reaching levels 39 per cent higher than before the Covid-19 outbreak. Investors will likely take this as a positive sign that the labour market remains strong even after the finish of Job Keeper and other government subsidies earlier in the year.
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Disclaimer: This Morning Brief has been prepared in good faith and reflects opinions and views 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. This Morning 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 broker disclosure statement is available free of charge at www.jarden.co.nz. Jarden is not a registered bank in New Zealand. Full disclaimer available at: https://www.jarden.co.nz/limitations-and-disclaimera>
