The biggest decliner of the day was The a2 Milk Company, dropping 11.3 per cent. The market reacted unfavourably to the information presented at the infant formula producer's investor day yesterday. On the back of this decline, Synlait's share price decreased by 3.0 per cent, with the companies commercially linked.
Outdoor retailer Kathmandu Holdings also underperformed, declining 2.5 per cent.
The latest numbers from the ANZ business confidence survey show that companies are more confident about their own outlook (21.7 per cent vs 18.2 per cent in September) but more pessimistic about the broader economy, with 13.4 per cent expecting it to get worse (7.2 per cent in September). Increasing costs and higher inflation expectations support the worsening economic outlook of survey participants.
International Markets:
US:
US markets were a mixed bag at the time of writing. The S&P 500 was 0.2 per cent higher, the Nasdaq was trading up 0.8 per cent, and the Dow Jones Industrial Average had declined 0.2 per cent.
Outperforming sectors were communication services and consumer discretionary, which made gains of 2.0 and 1.1 per cent, respectively.
Enphase Energy soared, up 28.7 per cent at the time of writing. The technology energy company released its third quarter financial year 2021 results with record revenue reported. Sales of US$351.5 million for the quarter represented an 11 per cent increase from the previous quarter.
Juniper Networks increased 7.8 per cent. It was announced this week that net revenues had increased 4.0 per cent year-on-year at the third quarter 2021 financial results release.
Downward pressure on indices was applied from the two sectors that saw the greatest declines, energy and financials, each dropping 2.3 and 1.2 per cent. The decline of energy sees a slight reversal of recent increases, with WTI crude oil falling 2.5 per cent overnight.
Fiserv was the worst performer of the S&P 500, declining 12.7 per cent. The financial services and technology company beat earnings estimates at its results release overnight, but only by a slim margin. Investors may have been expecting higher performance, selling off after the results release.
Twitter fell 9.6 per cent. It was another company which narrowly met earnings expectations in its third quarter 2021 results release, disappointing the market. The company outlined that heightened expenses, like investing in employee numbers, will continue into the 2022 financial year.
Rest of the World Markets
Asian indices were in the red, losing some of the gains made earlier in the week. The Hang Seng traded down 1.6 per cent, the Nikkei fell a slim 0.1 per cent, while the Shanghai Composite fell 0.1 per cent.
Commodities:
In commodities this morning, gold traded up 0.3 per cent at US$1,798.10 per ounce. WTI crude oil declined 2.5 per cent to US$82.55 per barrel after stockpile increases, and the US 10-year bond is trading at 1.534 per cent.
Bitcoin continued a volatile week, down 5.0 per cent, while Ethereum declined 5.4 per cent.
Australian Markets:
Australian equities nudged higher at yesterday's close with the S&P/ASX 200 finishing the day at 7,448.7 points, up 0.1 per cent.
Markets traded with inflation data released earlier during the day. Prices pushed to a 0.8 per cent quarterly increase, reaching 3.0 per cent year-on-year, much in line with market expectations. Housing and transport led the way, with price increases of 1.4 and 2.9 per cent, respectively - the highest of all categories.
Outperforming sectors included technology and healthcare, which made gains of 1.2 and 1.1 per cent at the close.
Sector gains were buoyed by telecommunications and infrastructure company Uniti Group, which announced they would roll-out an on market buy back which will commence mid-December. Water flow and plumbing solutions company Reliance Worldwide Corporation (RWC) also made gains, finishing Wednesday's trading up 4.6 per cent. RWC reported its quarterly earnings to 30 September, with investors reacting favourably to an 8.0 per cent increase in sales.
In contrast, downward pressure on indices was drawn from sector losses of consumer non-cyclicals (down 1.8 per cent) and materials (down 1.3 per cent).
The stocks with the largest declines on the day consisted of technology company Codan Ltd and miner Champion Iron, each falling 18.8 and 6.6 per cent. Codan's share price dropped following its annual general meeting, while Champion Iron traded along with its underlying commodity prices and weakness across the sector.
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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>
