There are concerns that growth in the US could be slowing. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
The S&P NZ50 ground out a small gain of four basis points on solid volume.
Dairy exporter a2 Milk continued its rebound with a 2.7 per cent rise after the announcement of progress
on its Taharua acquisition earlier in the week.
Elsewhere Pacific Edge rose 2.5 per cent to $1.23 as a recent peer-reviewed paper confirmed outperformance from the combined use of Cxbladder products. The paper was based on a large paper set and was supported by key client Kaiser, both of which boosted the significance of the publication. Cxbladder proved significantly more effective than current urology guidelines, making the case for its inclusion as standard care for bladder cancer in the US.
The next best performer on the day was Precinct Properties, which took its turn to lead the REIT charge with a 1.79 per cent gain to close $1.71.
The worst performers on the day were topped by Serko giving back some of its gains from the past two weeks, this reopening trade favourite fell 3.96 per cent to close $7.28. KFC owner Restaurant Brands was the next worst performer on the day, down 2.3 per cent to close at $14.85.
Analysts have forecast that soaring aluminium prices, up around 66 per cent since April 2020, may drive Rio Tinto to reopen the idle potline four at Tiwai point Aluminium smelter. Such a move would benefit Meridian Energy, which would see a significant amount of electricity demand come back online.
INTERNATIONAL:
US:
Among rising fears about the economic recovery all three major US indices were trading in the red. The S&P500 declined 0.9 per cent, the NASDAQ was down 0.6 per cent, and the DJIA fell 1.0 per cent, at the time of writing.
All sectors were underperforming, with financials dropping the most, down 2.1 per cent, followed by industrials (-1.6 per cent) and materials (-1.4 per cent).
The top performing stocks of the day were led by biopharmaceutical company, Biogen, rising 4.1 per cent, due to the company's advancements in developing an Alzheimer's drug. Next in line was metal packaging supplier, Ball Corp, increasing 3.0 per cent, followed by oil and gas explorer, Cimarex Energy, up 2.7 per cent.
Railroad companies Kansas City Southern, falling 7.9 per cent, Norfolk Southern Corp, declining 6.9 per cent, and CSX Corp, down 5.9 per cent, were the biggest losers of the session. President Biden is expected to give an order in the coming days, to US transportation agencies in relation to competition in rail and sea shipping. The President wants to address monopolized railroads and increase competition to lower consumer prices.
Rest of the World Markets:
Due to fears about the delta variant of the corona virus all the major Asian indices were underperforming. The Nikkei declined by 0.9 per cent, the Shanghai index was down 0.8 per cent, the Shenzhen decreased by 0.4 per cent, and the Hang Seng dropped 2.9 per cent.
Japan declared a state of emergency due to rising COVID cases, which will last from 12 July until 22 August. Additionally, the country has banned spectators from the Olympics as the games are scheduled from 23 July to 8 August. There was already a ban on international spectators and a limit on domestic spectators of 50 per cent of capacity.
Over 11,000 competitors plus several thousands of officials and support staff are still expected to travel to Japan.
Commodities
Gold declined by a slim 0.2 per cent and was trading at US$1,798.40 per ounce.
Oil increased by 0.8 per cent to US$72.80.
Cryptocurrencies were all underperforming. Bitcoin fell 5.2 per cent and Ethereum dropped 9.2 per cent. Yesterday, US Senator Elizabeth Warren spoke out on her concerns regarding the lack of regulation of the cryptocurrency market and the resulting risk to consumers. She has also addressed the Chair of the Securities and Exchange Commission (SEC), Gary Gensler, in a letter expecting answers by 28 July about the SEC's authority to protect consumers investing and trading in cryptocurrencies. This may lay the groundwork for legislation to implement regulation.
The 10-year US treasury continued its downward trend, yielding 1.288 per cent, at the time of writing.
Australian Markets:
The ASX200 rose 0.2 per cent yesterday. This was led by the sector movements in information technology, up 1.3 per cent, and consumer staples rose 1.1 per cent. The rose in the information technology sector followed the US NASDAQ technology stock highs.
On the flip side, Utilities fell 0.5 per cent and Energy fell 0.4 per cent.
Buy-now-pay-later Zip rose 13.7 per cent, being the top performer of the ASX200 yesterday. This followed the news that Klarma, a Sweedish buy-now-pay-later provider may have built a small stake in Zip. A 5 per cent stake would require disclosure.
Likely on the back of US technology stock highs, analytics and intelligence software company Nuix rose 9.5 per cent and location intelligence company Nearmap gained 6.6 per cent.
Fund management company Magellan Financial Group fell 3.9 per cent. Multiple change of directors shareholdings notices were released for the company yesterday. Mining companies Perseus Mining and Chalice Mining declined by 3.1 per cent and 2.8 per cent respectively.
IN M&A news, the infrastructure, mining and media sectors continue to run hot with activity. Billboard company oOh!Media has announced plans to sell its online youth publishing division Junkee Media as part of a strategic retreat to its traditional outdoor advertising business. Finally, ASX-listed lithium play Sayona Mining is seeking a $45 million equity injection to acquire North America Lithium.
• For more information on the latest market moves, get in touch with Jarden.
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>
BGH's tilt at Tourism Holdings has sparked more merger and acquisition speculation.