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New Zealand
The NZX50 was down 0.3 per cent yesterday, despite Australia posting gains.
Payment solutions company Pushpay Holdings was the best performer on the day, up 6.2 per cent. Construction company Fletcher Building was the next best performer, up 2.9 per cent. Dairy exporter A2 Milk was the worst performer on the market, down 3.7 per cent. Content provider SKY Network Television was the next worst performer, down 3.6 per cent.
Martin Stewart, the CEO of Sky Network Television, will leave the company to return to Europe. The company acknowledged Stewart's efforts in leading the turnaround of the business and say they are well positioned to achieve their strategic objectives of growing streaming, diversifying into broadband and securing the rights to the best sports and entertainment going forward.
Sophie Moloney, Sky's current chief commercial officer, will be appointed in Stewart's place, the first woman to serve as Sky's Chief Executive.
Property ownership and management company Property For Industry announced the outcome of independent valuations of its portfolio. The result was a revaluation uplift of $75 million to $1.63 billion.
As a result, the firm's passing yield (net rental income over value) is approximately 0.5 per cent, compared to 5.7 per cent as at 30 June 2020. Seventeen cents per share will be added to the company's net tangible assets, which is 205 cents per share as at 30 June 2020.
International
US Markets:
The indices continued to hit record highs, at the time of writing, the Dow Jones was up 0.9 per cent, while the S&P 500 and Nasdaq were up 1.3 and 1.4 per cent respectively.
At the time of writing all sectors were in the green this morning with Communication Services, Financials and Technology the outperformers, up 2.6, 1.9 and 1.6 per cent respectively. The laggard was Consumer Staples which was up 0.4 per cent.
Within the Nasdaq 100, large cap FAANG stocks continued to see rotation back into them, with Facebook up 4.4 per cent, Alphabet up 3.8 per cent and Apple up 3.3 per cent.
Zoom Video shares dropped nearly 14 per cent, with investors considering that their enormous growth for the year is slowing down. This comes despite revenue and earnings per share soaring past consensus numbers. Revenue was up 367 per cent to US$777 million, while earnings per share was 33 per cent above forecasts.
Tesla continued to edge higher, posting another 2.4 per cent gain, following news that the company will be added in one go to the S&P 500 on December 21st.
Chinese electric vehicle company NIO slid more than 7 per cent following the company's reports of its latest delivery numbers. This comes despite the company delivering 5,921 for November, which is a monthly record and a 109 per cent increased compared to November 2019.
Asian markets:
At the time of writing, all Asian indices were in the green, with the Shanghai and Shenzhen outperforming, with gains of 1.8 and 1.9 per cent respectively. The Nikkei 225 was also 1.4 per cent higher.
New conflict between China and Australia has arisen, following a Chinese diplomat posting a photo of a troop holding a knife to an Afghan child's throat. With Australian Prime Minister seeking an apology from this behaviour, Chinese Foreign Minister hit back and said Morrison lacks "a sense of right and wrong". The diplomats are gaining further traction within China and therefore it looks like this messy dispute between the two countries is still far from its peak.
Commodities:
At time of writing, Gold was up 2.0 per cent, trading at US$1815.9 per ounce. WTI Crude was down 1.4 per cent, trading at US$44.7 per barrel. The ten-year Treasury yield was up to 0.92 per cent.
Australia
Australian stocks rebounded from Monday's decline, rising 1.1 per cent with large-cap banks and miners carrying the index growth. The index gains came despite the RBA decision to keep the cash rate unchanged at 0.1 per cent, in line with market expectations.
The Central Bank in its announcement did acknowledge that economic data has been generally better than expected, although it does not expect GDP to return to normal until the latter part of 2021.
On a sector basis, Cyclical stocks performed the best - with the sector up 1.9 per cent at close - led by Domino's Pizza following its investor day presentations. Basic Materials (+1.3 per cent) and Industrials (+1.2 per cent) also performed strongly, while the Energy sector underperformed - although still in the black (+0.1 per cent).
Collins Foods' rose by 10.9 per cent after it reported half-year results, highlighting an 11 per cent uplift in revenue with strong performance across its Taco Bell and KFC chains. KFC sales were up by 12.4 per cent on a like for like basis, while Taco Bell sales recovered to pre-Covid levels.
However, group profits were impacted by the permanent closures of Sizzler restaurants across the country and saw Collins' report a A$16.5 million profit for the half - 19 per cent less than the same period last year.
Meanwhile, Fortescue Metals reaffirmed earlier earnings guidance for its 2021 financial year, advising that it expects to ship between 175 million to 185 million tonnes.
Coming up
International
Eurozone will have its PPI and unemployment rate data out today. America will have its Markit manufacturing PMI, ISM manufacturing index and also Fed chair Jerome Powell speaking.
Australia
Australian third-quarter GDP figures will be released, as well as the latest building approval numbers.
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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