Cryptocurrency prices have slumped recently. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
The NZX 50 fell 1.0 per cent, down for the sixth consecutive day.
Healthcare and financials were the lagging sectors yesterday, down 1.7 and 1.5 per cent, respectively.
Comparatively, the only sector to increase was real estate, up 0.1 per cent.
The Reserve Bank of New Zealand will announce its latest decision on the official cash rate (OCR), during the Monetary Policy Review tomorrow. Market expectations are of a 25 basis point rise in the OCR, which would take the OCR to 0.75 per cent, with some potential for a 50 basis point rise.
Retirement village operator Ryman Healthcare declined 3.8 per cent, continuing to decline after releasing its half-year results.
Agri business supplier Skellerup Holdings declined 3.7 per cent, easing back from recent record highs.
Port of Tauranga lost 3.3 per cent in line with the rest of the companies tightly linked to the NZ 10-year bond yields, dropping as the NZ 10-year bond yield rises.
Companies seeing increases include agribusiness company Scales, which increased 2.2 per cent, and retirement village operator Arvida (+1.6 per cent).
Logistics giant Mainfreight gained 1.5 per cent, up from a recent dip.
International
US
US markets were mixed this morning as the S&P 500 and Dow Jones Industrial Average are currently trading higher by 0.6 and 0.4 per cent, with the Nasdaq lagging at a loss of 0.4 per cent, at the time of writing.
Headlines were dominated by Federal Reserve Chair Jerome Powell being appointed for a second term as Chairman of the United States' central bank. Markets were seemingly buoyed by the appointment of Powell, who guided the country's monetary policy through the last two years of the Covid-19 pandemic with bond-buying stimulus and interest rate cuts.
Sector gains included financials and energy, each leading the way with 2.0 and 1.8 per cent increases.
These sector gains were well supported by the single stock seeing the largest increase, biomedical company Moderna, rising 6.4 per cent, at the time of writing. Moderna, which produces one of the Covid-19 vaccines, likely traded higher on stronger case data in Europe, as the continent heads into winter. Also, there was news of recent approval from the Centre for Disease Control (CDC) that healthcare provider Publix Pharmacy (among many others) can begin issuing booster vaccinations to those 18 years or older.
Steel products company Nucor (+5.8 per cent) and resort operator Las Vegas Sands (+5.5 per cent) also saw some of the largest rises of the day.
In contrast, downward pressure on indices was drawn from sector losses of technology (-0.6 per cent) and consumer cyclicals (-0.3 per cent).
Payment services provider Mastercard declined 5.5 per cent at the time of writing. News included the completed acquisition of Dutch banking technology provider Aiia.
Joining Mastercard was apparel staple Under Armour which lost 5.5 per cent amid a range of broker forecasts predicting negative earnings per share growth for its upcoming fiscal quarter end, following strong previous results released on 2 November.
Rest of the World
Asian indices were mixed overnight. Highlights include the Shanghai Composite and the Nikkei making gains of 0.6 and 0.1 per cent each, while the Hang Seng finished 0.4 per cent lower at the close.
News on Monday included China leaving its loan prime rate (LPR) unchanged at 3.85 per cent, with the five-year rate also constant at 4.65 per cent.
Commodities
In commodities this morning, gold is trading weaker by 1.9 per cent at US$1,815.7 per ounce with certainty surrounding Fed Chair Powell's renomination leading to a sell-off in less risky assets.
WTI crude oil tracked higher by 0.5 per cent, now priced at US$76.3 per barrel ahead of potential release of Japanese, Indian, and US reserves - which should suppress prices.
Yields are also trading slightly higher, with the 10-year US Treasury rate now priced at 1.60 per cent.
Crypto continued its poor run, with Bitcoin lower by 3.4 per cent to US$57,492 and Ethereum down by 3.8 per cent to US$4,206.
Australia
The ASX 200 opened the week in the red, trading 0.6 per cent lower, slipping below its 125-day moving average.
Most sectors experienced declines, with information technology (-2.0 per cent) and energy (-1.5 per cent) booking the biggest losses. On the other hand, materials (+0.5 per cent) and consumer staples (+0.3 per cent) were among the four sectors that ended the trading session in the green.
The ASX 200 was buoyed by mining companies Nickel Mines (+8.0 per cent), Pilbara Minerals (+4.5 per cent), and Orocobre (+4.2 per cent).
Nickel Mines announced a Memorandum of understanding (MoU) with its strategic partner Shanghai Decent Investment to "consolidate and expand" on that relationship. On the back of the MoU, Nickel Mines will purchase a 70 per cent interest in the Oracle Nickel Project in Indonesia. The new development is currently under construction and will be able to produce up to 36,000 tonnes of nickel metal. The MoU also outlines a framework for both parties to move into renewable energy sources to reduce carbon emissions.
On the flipside, travel company Flight Centre Travel Group dropped 7.3 per cent, followed by business travel services provider Corporate Travel Management, decreasing 5.9 per cent. Qantas also declined, closing 3.7 per cent lower.
The sell-off for travel-related stocks occurred after markets in the US and Europe closed lower on Friday due to significant rises in COVID-19 cases.
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Disclaimer: 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
GST rate hike deemed a viable option.