Australia will stop its bond-buying programme this week. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
The NZX 50 rose again yesterday, closing up by 0.2 per cent.
This increase was led by the consumer cyclicals and technology sectors, up 1.5 and 0.9 per cent, respectively.
Kathmandu rose 4.3 per cent yesterday. This could be related to the announcement that in New Zealand (excluding Auckland) would move down to Covid-19 alert level 2, allowing for store reopening. However, other stocks impacted by the alert level change did not see similar optimism. Tourism Holdings declined by 1.7 per cent, although this may be justified on the basis that the company is more reliant on international tourism than domestic activity.
At the same time, donor management company Pushpay rose 3.4 per cent. It announced on Monday the appointment of Richard Keys as Interim Chief Financial Officer.
On the other hand, real estate and healthcare declined by 0.4 and 0.1 per cent, respectively.
Sky TV's share price decreased the most yesterday - falling 2.3 per cent and losing some of Monday's 4.9 per cent gain. Synlait Milk also had a second day in the red, down another 1.9 per cent on top of Monday's 3.6 per cent decline.
The Reserve Bank of New Zealand Deputy Governor, Geoff Bascand, announced he would be stepping down in January. This follows more than eight years in the role. Governor Adrian Orr acknowledged Bascand's "incredible contribution to the bank".International
US
US markets were mixed this morning, with the S&P 500 and Dow Jones Industrial Average currently trading down 0.2 and 0.6 per cent. The Nasdaq was up 0.2 per cent at time of writing.
Sector gains included consumer staples and communications, each leading the way with 0.5 per cent increases.
Casino and hotel operator Wynn Resorts Ltd took the lead this morning, jumping 4.8 per cent. Similarly, Moderna Inc extended gains of 4.4 per cent as the bio-tech company, which supplies one type of Covid-19 vaccine, traded in-line with increased Covid-19 vaccine implementations. It also announced its intention to develop another specialty drug for patients suffering the rare Crigler-Najjar Syndrome.
In contrast, downward pressure on indices was drawn from sector losses in industrials (down 1.5 per cent) and real estate (down 1.3 per cent).
Rounding out the index, as the single stock loser at the time of writing, was American apparel company VF Corp. It slumped to a 4.8 per cent loss after announcing an under-par quarterly dividend at 49 cents per share. The company also announced that one of its board members would resign, and would not be replaced – trimming the overall board size from 12 to 11.
Joining VF was agricultural financial services company Deere & Co, sliding to a 4.7 per cent loss at the time of writing.
Asia
Asian indices were positive overnight. Highlights include the Hang Seng, Shanghai Composite, and Nikkei making gains of 0.7, 1.5 and 0.9 per cent, respectively.
Markets may have been buoyed by impressive export data as Chinese exports increased 25 per cent year-on-year in August, beating expectations set at 17 per cent.
Commodities
In commodities this morning, Gold is trading weaker by 1.9 per cent at US$1,799.70 per ounce. WTI crude oil was also lower by 1.7 per cent, now priced at US$68.10 per barrel.
Yields are trading higher this morning, with the 10-year price currently at 1.36 per cent.
It has been a busy 24 hours in Crypto markets, with Bitcoin falling 9.0 per cent to US$47,186.10 and Ethereum following suit, down 12 per cent to US$3,472.30. The drop came despite news that El-Salvador would now accept bitcoin as legal tender for all vendors, the first country to do so.
Australia
The ASX 200 was flat yesterday, closing only 1.8 points higher.
The Reserve Bank of Australia has made the decision to start tapering its bond purchases. The bank's A$200 billion bond-buying programme will end this month, after which the bond-buying stimulus will be reduced to A$4 billion per week until February 2022, down from the current A$5 billion per week. The RBA has justified this on the belief that the current economic impact of Covid-19 lockdowns is only transitory.
Telecommunication services and energy were the best performing sectors of the day, increasing by 0.9 and 0.8 per cent, respectively. On the flip side, materials and consumer staples were the biggest underperformers, down 0.8 and 0.2 per cent, respectively.
Mineral explorer Chalice Mining was the best performer on Tuesday, rising 6.3 per cent, closely followed by Flight Centre Travel Group, up 6.2 per cent. The travel agency has been on an upward rally for the past two and a half weeks with improving vaccination numbers and travel resuming in key markets outside of Australia and New Zealand.
Software-as-a-service company Technology One also performed well, increasing by 4.4 per cent. The company announced on Friday that it has entered into an agreement for the acquisition of Scientia Resource Management, a UK company servicing the higher education sector.
The top decliners were led by gold and mineral explorer, Regis Resources, decreasing by 4.6 per cent, and artificial intelligence company Appen, which decreased by 4.4 per cent. Mineral Resources traded 3.6 per cent lower following yesterday's news that it had sold its 5.4 per cent stake in Pilbara Minerals.
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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>