Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand markets were in the green on Thursday with the S&P/NZX50 index climbing 1.2 per cent and all sectors recording gains.
The index was carried up by heavyweights A2 Milk and Fisher and Paykel Healthcare Ltd, which traded up 3.9 and 3.6 per cent, respectively.
Meanwhile, agribusiness company Scales Corporation was the biggest loser falling 3.1 per cent. Joining Scales was aged care provider Oceania Healthcare Ltd which slumped down 2.3 per cent.
Gentailers continue to dominate market headlines after a volatile few months for the utilities sector. South Island rainfall levels are a fraction of their usual average for this time of year, which limits the amount of possible electricity generation for hydro based suppliers such a Meridian and Contact. Yesterday, it was reported that if unfavourable generation conditions continue, Meridian may have to call on its largest customer (the Tiwai smelter) to reduce its electricity usage to ensure supply meets demand until generation increases to normal levels.
To round off yesterday's news, New Zealand exchange operator NZX announced its plans to build a new office and events centre in Auckland's CBD. The fitout of their current office in Jarden House is expected to cost the company close to NZ$3.5 million.
The major US indices continued in strength after a record-setting week. At the time of writing, the gS&P500 was up 0.3 per cent, the DJIA was up a slim 0.1 per cent, the NASDAQ up by 0.9 per cent.
The biggest sector gains were made by Technology, increasing 1.2 per cent, followed by the Consumer Discretionary Sector, which hit a 52-week high today up 0.6 per cent. Energy and Real Estate made the biggest losses, decreasing 1.7 and 0.4 per cent, respectively.
At time of writing, the top-performing stock was online marketplace Etsy, increasing 4.5 per cent, followed by Invisalign producer Align Technology, up 4.3 per cent.
At the bottom of the board was alcohol producer Constellation Brands, falling 4.6 per cent despite beating analyst expectations in its quarterly earnings report. Rounding off the top decliners were energy holding company APA Corporation and oil and gas producer Cabot Oil & Gas, both down 3.8 per cent.
Apple rose 1.7 per cent to US$130.13 despite its current lawsuit by Epic Games, which claims the iPhone maker is engaging in anticompetitive behaviour. Epic argues that Apple has monopoly powers, after the mobile phone giant banned customers from being able to download "Fortnite" from its app store. Meanwhile, Apple argues that it faces enough competition within the video game industry to justify its behaviour.
The hearing is scheduled for May this year.
Rest of the world:
The Shanghai Composite rose 0.1 per cent, while the Nikkei was down 0.1 per cent. The Hangseng made the biggest gains out of the three, up 1.2 per cent.
Prosus NV (+1.8 per cent), a Dutch technology investor, conducted one of the largest ever block trades, selling a 2 per cent stake in the Chinese gaming and social media company Tencent Holdings (-1.5 per cent). The transaction is said to have a value of US$14.6 billion and included the sale of 191.9 million shares, reducing Prosus' stake to 28.9 per cent.
Due to rising bond yields, the European Central Bank (ECB) could support frontloading bond purchases if need be, to prevent its financing conditions from tightening. The bank would be able to buy more within the current limits of its Pandemic Emergency Purchase Program to preserve the economic recovery of the euro region, which is still working on EU level coronavirus relief funds.
Gold was finishing the week strong, up 0.8 per cent to US$1,756.10.
Oil traded down 0.4 per cent to US$59.55, due to OPEC+ deciding to curb production beginning in May. The alliance has decreased current output by about 7 million barrels per day to keep prices afloat and counter oversupply.
Cryptocurrencies were all in the green at the time of writing. Bitcoin gained 3.7 per cent and Ethereum was up 5.0 per cent. The fourth-largest cryptocurrency exchange, Kraken, is considering following its competitor Coinbase's example of a direct listing in 2022. The platform has more than 6 million users and is currently looking at a new funding round, which could value the company at US$20 billion.
The 10-year treasury yield decreased very slightly to 1.64 per cent, after the Weekly Jobless Claims report turned out to be worse than expected. The first-time claims for the week ending 3 April were 744,000, according to the US Labour Department, vs 694,000 expected by economists.
The ASX200 had a strong day yesterday, rising 1.0 per cent. All 11 sectors were in the green, led by Materials, up 1.8 per cent, and Telecommunication Services, up 1.2 per cent.
Payment solutions company - EML Payments – was the top performing stock yesterday, up 5.7 per cent, following the previous days 5.3 per cent increase. This week they announced the acquisition of Sentenial, a European payments provider. Investors responded positively to the acquisition with it presenting new opportunities for growth and international expansion.
Unibail-Rodamco-Westfield rose 4.5 per cent after its primary European listing surged overnight amidst falling bond yields.
Gold mining company, Resolute Mining, fell 3.1 per cent. Traditionally an inflation hedge, rising investor confidence has put downward pressure on gold prices in recent months.
Another underperformer was manufacturing company – Brickworks, which fell 2.5 per cent.
The Australian Government made an announcement last night on the Covid-19 vaccination programme, noting that 4 - 6 people per million Astra-Zeneca vaccine doses experience blood clots as a side effect. One person has been recorded in Australia as having these side effects. Meanwhile, Australians aged under 50 will not be given the AstraZeneca vaccine under recommendations from the nation's health advisers.
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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