The price of silver has been driven up by Reddit users in the latest bid against short-sellers. Photo / AP, Michael Probst
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
The S&P NZ50 was down 0.2 per cent yesterday, with fast foods franchisor and operator Restaurant Brands down 0.4 per cent after it released its fourth quarter sales report.
Total sales for the year of $892.4 million were up 2.1 per cent for the year on a like-for-like basis. The result is strong considering that it included four months operation of the recently acquired Californian stores, which were heavily affected by lockdowns in the US. The result shows good evidence that the company has weathered Covid-19 headwinds admirably.
Strong domestic earnings and a larger than usual company tax take have underpinned a surprisingly strong result for government finances. Though blown out to $4.3 billion by the Covid-19 response, the deficit was $546 million less than forecast in December last year. GST revenue was $400 million greater than forecast, and income and corporate tax revenue was $300 million higher than expected. This evidences a recovery in consumer spending consistent with what many retail companies have been reporting for the Christmas and New Year period.
INTERNATIONAL
US Markets:
US stocks recovered last night, led by the tech sector as the NASDAQ rose 2.4 per cent. The S&P 500 and Dow Jones Industrial Average were slightly softer, but still gained 1.5 per cent and 0.8 per cent, respectively.
Almost all sectors were in the black yesterday, with Tech up 2.4 per cent, while Consumer Discretionaries and Staples were each up by 2.2 per cent. The only sector that dropped was Energy, down a meagre 0.1 per cent.
The market was buoyed by megacap Google, which rose 4.2 per cent after announcing a six-year deal with car-maker Ford Moto Co. to introduce Android technology to its cars, and cloud services to its manufacturing plants. While the monetary value of the deal was kept private, Google has confirmed it will start receiving revenue from its cloud services, as well as a licensing fee for its services for every Ford and Lincoln vehicle sold from 2023.
Meanwhile, other big tech names such as Tesla (+4.9 per cent), PayPal (+4.0 per cent) and Microsoft (+3.8 per cent) also increased.
The Reddit-led short squeeze continued over the weekend, with attention turning to silver futures. Options in the commodity traded 7.3 per cent higher early in the day, after briefly breaking a 8 year record high of US$30.35. Silver miners have been key beneficiaries of the increase, with Pan American Silver up 9.0 per cent and Coeur Mining up 19.1 per cent today.
At the same time, Gamestop stock has fallen 24.5 per cent, and AMC Entertainment by 17.9 per cent at time of writing after the restrictions put in place by discount brokers such as Robinhood and Ameritrade TD slowed momentum.
Asian markets:
Asian markets recovered from last week's gains, with the Shanghai index up 0.6 per cent, the Nikkei up 1.6 per cent, and the Hangseng recovering 2.2 per cent.
The Myanmar region has embroiled in turmoil over the last 24 hours after its military seized power on Monday following a landslide democratic victory from Nobel laureate Aung San Suu Kyi. The army has alleged election fraud through what seems familiar as 'Trumpian' rhetoric, and has advised it will be taking power for a period of one year through imposing a state of emergency.
Commodities:
At time of writing, Gold was up by 0.8 per cent, trading at US$1862.30 per ounce. Meanwhile WTI Crude was up 1.7 per cent, trading at US$53.10 per barrel.
Australia
The S&P ASX200 finished the day up 0.8 per cent, with larger companies marginally outperforming.
The best performing sector on the day was Health Care, rising 1.7 per cent. The next best performing sector was Materials, which gained 1.3 per cent. Utilities, down 0.6 per cent, was the only sector in the red for the day.
Australia's largest investment bank Macquarie has spun out assets and people into a development company focused on solar energy in Europe, named Cero Generation. The new standalone unit within Macquarie's Green Investment Group will start with a portfolio of 150 projects across the European continent.
The initiation of such a project in Europe, a region not usually known for its sunshine, speaks to the leaps and bounds made by solar panel technology, which is now at such a level that projects can operate economically in environments known for lower levels of irradiation. Britain and the European Union are aiming for carbon neutrality by 2050. Green investing may stand to benefit from an increasing raft of subsidies in the pursuit of this goal.
Meanwhile, the best performing company on the day was healthcare supplements company Blackmores, which advanced 8.9 per cent. Cancer diagnostics and treatment company Mesoblast also had a good day – climbing 5.9 per cent. On the other hand, engineering services company Worley lost 10.9 per cent and construction engineering company Service Stream, fell 4.7 per cent.
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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-disclaimer