Keeping you up to date with the latest market moves, in association with Investment firm Jarden
The S&P/NZX 50 traded lower on Monday, by 0.2 per cent, to finish at 13,227.7
Yesterday the Prime Minister announced the government's intention to trial self-isolation for some overseas travellers. This boded well for Air New Zealand (up 3.5 per cent) as it presents a potential path toward more frequent international passenger numbers.
Against the run of play, financials and consumer non-cyclicals made gains of 1.6 and 1.2 per cent, finishing as Monday's top performing sectors.
Synlait Milk advanced 7.9 per cent after releasing its FY21 earnings result. Although many headline figures declined significantly compared to 2020 (with Synlait making a loss of $28.5m from a $75m gain last year) they were likely still better than investor expectations. Furthermore, the appointment of new CEO, Grant Watson, may have fuelled positive investor sentiment. The second top performer was film software company Vista Group, which was up 5.0 per cent by Monday's close.
Sector losses were led by real estate (down 1.7 per cent) and energy (down 1.1 per cent)
Retirement village operator Oceania Healthcare fell 3.3 per cent along with Sky TV (down 2.9 per cent) as the two headlined the underperformers for Monday's trading.
The major US indices were a mixed bag this morning. Investor sentiment was buoyed by better-than-expected August numbers for durable goods orders (+1.8 per cent to US$263.5 billion), which were mainly driven by a jump in the transport sector (+5.5 per cent). On the other hand, fears of a potential government shutdown at the end of the week were dampening performance in the market. Congress must pass a new budget by the end of September to avoid a shutdown. Additionally, the debt ceiling needs to be increased or suspended in October, otherwise the US risks defaulting on its debt for the first time.
At the time of writing, the S&P 500 traded 0.4 per cent lower, the NASDAQ declined 0.8 per cent, while the Dow Jones Industrial Average (DJIA) increased 0.3 per cent.
Energy (+3.3 per cent) and financials (+1.3 per cent) were pushing the market higher, as oil prices soared. The 10-year treasury yield was trading close to the 1.5 per cent level. Health and technology were the laggards this morning, decreasing 1.5 and 1.1 per cent respectively.
The biggest gainers of the S&P 500 were led by oil and gas explorers. Occidental Petroleum (+7.0 per cent), Cimarex Energy (+6.8 per cent), Cabot Oil & Gas (+6.7 per cent), Diamondback Energy (+6.5 per cent), and Marathon Oil (+5.8 per cent) were all profiting from the rising oil prices and strong performance of natural gas, which is trading near 13-year highs.
The worst performers at the time of writing were medical research companies and laboratory instruments providers. Charles River Laboratories International decreased 6.2 per cent. Next in line was Mettler-Toledo International, down 5.5 per cent, followed by Bio-Techne Corp, down 5.4 per cent.
Rest of the World Markets:
The major Asian indices delivered a mixed performance overnight. The Nikkei was flat, the Shanghai composite decreased by 0.8 per cent, and the Hang Seng increased by 0.1 per cent.
The world was closely looking at Germany over the weekend, as the country had its first election for a government without Angela Merkel in 16 years. The centre-left Social Democrats (SPD) won by a small margin, gaining 206 seats, while conservative Christian Democratic Union (CDU) received 196 seats. The two major parties have governed together before; however, the SPD is potentially looking to form a so-called "traffic light" coalition, with the Greens and the Free Democratic Party (FDP) (the colours of the parties are red, green, and yellow). The Conservatives could be able to form what has become known as a "Jamaica" coalition with the Greens and the FDP (all their party colours represent those on the Jamaican flag). Now it is up to discussions with the smaller parties. Angela Merkel will stay in place until the new government is formed, which could take until Christmas, or potentially longer.
Gold traded flat at US$1,752.40 per ounce.
Oil rallied 2.1 per cent to US$75.47 per barrel, on track for its highest close in seven years.
Cryptocurrencies were all in the red, with Bitcoin decreasing 0.4 per cent and Ethereum down 1.5 per cent. The latest crackdown - by the Chinese government - making any crypto transactions illegal, was weighing on the crypto market. Additionally, the US Department of the Treasury charged Russia-based cryptocurrency exchange, SUEX, with enabling cyber criminals. Officials claimed that 40.0 per cent of the exchange's transactions were associated with illicit actors.
US 10-year treasury yields rose to 1.475 per cent.
The S&P/ASX 200 rose 0.6 per cent yesterday, led upwards by the energy and financials sectors - gaining 1.7 and 1.5 per cent, respectively.
Online marketplace operator Redbubble was the top performer, gaining 7.6 per cent and recovering from last week's dip.
Flight Centre rose 7.5 per cent and Webjet increased by 5.2 per cent. These travel stocks experienced a boost after the plan to ease New South Wales' lockdown restrictions was outlined. Extra freedoms will only be given to vaccinated residents when the state hits full vaccination for 80 per cent of the eligible population in a two-tiered system. Key benefits include fully vaccinated residents being able to travel freely anywhere in New South Wales and attend weddings and funerals without guest limits. Flight Centre and Webjet investors responded favourably to this news.
Healthcare and consumer non-cyclicals were the worst performing sectors, falling 0.9 and 0.2 per cent, respectively.
Data centre operator Nextdc declined by 3.6 per cent and software company Megaport fell 2.9 per cent. Whitehaven Coal lost 2.5 per cent, coming back from recent highs.
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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>