It's been a turbulent week for the US market. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand:
New Zealand markets traded lower on Wednesday, in line with international markets. The S&P/NZX 50 dropped 0.4 per cent to 13,119.8 points.
The Warehouse Group released its full-year 2021 earnings on Wednesday with the company producing a record profit of over $117m, up 165 per cent compared to 2020 and modestly above investor expectations. The company finished higher by 1.7 per cent.
Heartland Group led the way with a strong performance as the bank closed Wednesday's trading up 3.5 per cent. Joining Heartland was Mainfreight, extended gains of 3.1 per cent, recuperating losses sustained earlier in the week.
Retail and travel-related equities also experienced declines yesterday. This comes as Covid-19 community case numbers rose to 45 on Wednesday, from eight on Tuesday.
In light of this, Air New Zealand finished the day amongst the lowest performing single stocks, down 3.0 per cent with only electricity retailer Meridian Energy slipping further (down 3.4 per cent). The Covid-19 developments also could have impacted the modest 1.7 per cent gain for the Warehouse Group.
International Markets:
US:
With yields slightly dropping at the start of Wednesday's session, the S&P 500 and the Dow Jones Industrial Average (DJIA) each increased 0.3 per cent. The NASDAQ was flat at 14,545.67 points.
Materials (-0.2 per cent) and energy (-0.1 per cent) were the only two sectors underperforming, at the time of writing. Utilities and consumer staples were leading the markets higher, increasing 1.7 and 1.0 per cent, respectively.
The clear winner of the session, at the time of writing, was discount store operator Dollar Tree, jumping 16.0 per cent, after the company announced that it would start selling items above US$1.0 as costs rise.
Oil and gas exploration companies made it onto the leader board again. Cimarex Energy increased 4.3 per cent and Cabot Oil & Gas was trading 4.2 per cent higher, both hitting 52-week highs.
The worst performer this morning was energy solutions designer and manufacturer Generac Holdings, decreasing 5.7 per cent. Next in line was computer manufacturer HP Inc. declining 3.8 per cent. NXP Semiconductors N.V. also underperformed, down 3.4 per cent.
The Mortgage Bankers Association reported the rate on a 30-year, fixed-rate conforming home loan rose by 3.1 per cent last week to the highest level since July, up from 3.03 per cent the previous week. This was leading to a 1.1 per cent decline in overall mortgage applications and refinancing applications were down 1.0 per cent.
Rest of the World Markets:
The major Asian indices were mainly lower, however, the Hang Seng increased by 0.7 per cent. The Shanghai composite declined 1.8 per cent, and the Nikkei declined 2.1 per cent.
Global media are reporting that offshore bondholders in Hong Kong-listed China
Evergrande Group (+15.0 per cent) are said not to have received a coupon payment which was due yesterday, worth a total of US$47.5 million. However, the developer reached a deal to sell its US$1.5 billion stake in Shengjing Bank.
Japan's former Foreign Minister Fumio Kishida is set to become the next prime minister, after winning the governing Liberal Democratic Party leadership election. Outgoing party leader Prime Minister Yoshihide Suga was in office for just one year.
Commodities:
Gold further decreased, down 0.8 per cent to US$1,724.30 per ounce.
Oil also declined for a second day in a row, trading 0.3 per cent lower at US$75.04 per barrel.
Cryptocurrency performances were mixed, with Bitcoin down 0.2 per cent, while Ethereum increased 0.1 per cent.
The US 10-year bond rate was yielding 1.544 per cent, at the time of writing.
Australian Markets:
The ASX 200 was in the red again yesterday, down 1.1 per cent to a new 50-day low.
Energy and healthcare were the worst performing sectors, down 1.8 and 1.7 per cent.
Pinnacle Investment Management fell 9.1 per cent, coming off from record highs associated with its AGM held last week.
Chalice Mining fell 6.0 per cent. Global supply chains have been affected, and metal prices declining, due to the power outages in north-east China. These outages have affected millions of homes and led to factory shutdowns.
Technology company Tyro Payments rounded out the bottom performers podium, down 5.8 per cent.
Academic and education services rose 2.3 per cent and utilities increased by a slim 0.3 per cent, being sectors providing upwards pressure yesterday.
On the flip side, St Barbara, Regis Resources and Silver Lake Resources increased by 6.7, 6.3, and 5.5 per cent, respectively. These gold companies were the top performers. Gold as a commodity is typically used as an inflation hedge, and these companies could have been boosted yesterday by inflationary concerns in the US, and investors looking to protect themselves against market volatility.
• 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>