Keeping you up to date with the latest market moves, in association with Investment firm Jarden
The NZX 50 decreased 0.2 per cent, despite a strong quarter two GDP result. In the three months to 30 June 2021, the NZ economy grew by 2.8 per cent, which is significantly above consensus economists' forecast of 1.1 per cent. Annualised GDP growth was 5.1 per cent. Economists expect a sharp contraction for the third quarter due to the Covid-19 lockdown, followed by an immediate rebound in the fourth quarter.
Sector performance was a mixed bag, with consumer non-cyclicals and utilities increasing by 0.8 and 0.7 per cent, respectively. On the flipside, technology and industrials were dragging the market lower, decreasing by 2.2 and 1.2 per cent, respectively.
The best performer on the NZX 50 on Thursday was Heartland Group Holdings, increasing by 2.2 per cent. The financial services group continued its upward trend of the week. Next in line was energy retailer Mercury NZ, up 2.0 per cent. Rounding out the leader board was EBOS Group, up 1.5 per cent.
Spark New Zealand was leading the bottom movers of the session, decreasing by 3.1 per cent, after the company went ex-dividend on Wednesday. Casino operator SkyCity Entertainment Group also underperformed, closing 3.0 per cent lower. Restaurant Brands New Zealand decreased by 2.9 per cent, after a volatile week.
US markets were down this morning, at the time of writing, with the S&P 500 0.2 per cent lower, the Nasdaq down 0.1 per cent, and the Dow Jones Industrial Average trading 0.2 per cent lower.
Leading downwards pressure was materials and energy, falling 0.9 and 0.6 per cent, respectively.
Freeport-McMoRan declined by 6.5 per cent. The mining company declined on reduced silver and copper prices.
Gold Mining company Newmont lost 4.1 per cent. This price movement will be linked to the 2.2 per cent decline in gold price overnight.
L3harris Technologies fell 3.6 per cent.
Consumer discretionary and real estate were top performing sectors, rising 0.4 and 0.3 per cent, respectively.
American Airlines rose 4.0 per cent and United Airlines increased 3.2 per cent. Competitor Southwest Airlines has just announced extra pay for employees who get vaccinated against Covid-19, this comes months after both American Airlines and United Airlines offered vaccination incentives.
Tapestry rose 3.3 per cent. It is a design house of luxury accessories with brands including Coach and Kate Spade.
Rest of the World Markets:
The Hang Seng (Hong Kong) traded down again, down 1.5 per cent, the Shanghai Composite (China) declined by 1.3 per cent, and the Nikkei (Japan) fell 0.6 per cent overnight.
Hong Kong's Hang Seng declined again on the potential of tighter casino regulations in Macau, culminating in a casino company sell off.
Gold declined again, falling 2.2 per cent to US$1,756.00 per ounce. WTI crude oil rose a slim 0.2 per cent, now priced at US$72.74 per barrel.
The 10-year US bond yield is now priced at 1.333 per cent.
In the main cryptocurrencies, Bitcoin is trading at US$47,468.60 (-1.2 per cent) and Ethereum rose to US$3,560.05 (+0.7 per cent).
The S&P/ASX 200 traded-in higher yesterday with the index climbing 0.5 per cent to 7,455.2 points.
Australia's Labour Force Survey for the month of August saw a reduction in overall employment by 146,300 jobs (greater than expectations of 80,000); unemployment still healthy at 4.5 per cent; and a 3.7 per cent decrease in hours worked compared to July. These figures may be reflective of the continued Covid-19 lockdowns in many parts of NSW.
Leading sectors comprised of both utilities and energy, each making gains of 0.8 per cent.
Chalice Mining led the way with a strong performance, up 6.4 per cent at yesterday's close. Chalice delivered an impressive update to investors in their monthly presentation on Thursday morning. Similarly, insurance broker AUB advanced 5.2 per cent to offset some losses after a poor four weeks for the stock.
On the flipside, educational services (down 0.7 per cent) and materials (down 0.1 per cent) were the laggard sectors at yesterday's close.
Weighing down index performance was the single stock loser Redbubble Ltd. The online retailer traded unfavourably, down 6.9 per cent. Joining Redbubble was lithium miner Pilbara Minerals, with investors likely reacting to the previous day's bumper trading,
levelling off Wednesday's 8.4 per cent increase with a 4.9 per cent loss on Thursday.
In other news, NSW's total second dose vaccination rate is likely to hit 50 per cent over the weekend, if it continues at the current pace (for those aged over 16). It was sitting at 49.6 per cent, at the time of writing. A 70 per cent immunisation target has been set, for when the state will start to lift Covid-19 restrictions.
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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>