“One economist is forecasting inflation at 1.7% by the end of the year and deflation will be a concern as 2025 rolls around.
“We could expect a 100 basis points reduction by the end of this year and the OCR reaching 3.25% by the end of the next year,” Sullivan said. “The market will be looking for the indicators and where the Reserve Bank thinks it will set the neutral rate that is neither stimulatory or contractionary.”
In the United States, the non-farm payrolls report showed 254,000 jobs were created in September, up from a revised 159,000 in August and way above the forecast of 150,000. The hospitality industry added 69,000 positions, after averaging just 14,000 over the previous 12 months.
The Dow Jones Industrial Average hit a new high after rising 0.81% to 42,352.25 points; S&P 500 was up 0.9% to 5751.07; and Nasdaq Composite gained 1.22% to 18,137.85.
At home, Fisher & Paykel Healthcare declined $1.33 or 3.7% to $34.62; Chorus fell 22c or 2.48% to $8.66; Mainfreight shed $1.10 to $70.40; and Spark was down 7c or 2.19% to $3.12. There is continuing speculation that Spark will be removed from the MSCI global index, with an announcement due on November 14.
Ebos Group gained 39c to $37.29; a2 Milk was up 14c or 2.03% to $7.04; Ryman Healthcare increased 15c or 3.34% to $4.64; and Summerset, whose planned Mosgiel retirement village of 260 units has been fast-tracked, collected 16c to $12.15.
Fletcher Building was up 10c or 3.25% to $3.18; Mercury Energy gained 19c or 2.98% to $6.575; Manawa added 10c or 1.94% to $5.25; Gentrack increased 45c or 4.23% to $11.10; and Westpac Bank rose $1 or 3.03% to $34.
In the retail sector, Hallenstein Glasson gained 11c to $7.31; Michael Hill was up 2c or 3.85% to 54c; and The Warehouse increased 9c or 8.18% to $1.19.
Other gainers were Channel Infrastructure up 5c or 2.84% to $1.81; Eroad increasing 3c or 2.86% to $1.08; and Ventia Services adding 16c or 3.17% to $5.20.
Vista Group was up 7c or 2.52% to $2.85; Delegat Group collected 10c or 1.86% to $5.48; SkyCity gained 4c or 2.74% to $1.50; and Goodman Property Trust increased 7.5c or 3.65% to $2.13.
Santana Minerals rose 30c or 13.57% to $2.51 after its Central Otago Bendigo-Ophir gold project was included in the schedule of the Fast-track Approvals Bill – one of 149 projects approved.
Santana earlier told the market it is buying 92ha of land to ensure a water supply to the project, and is on track to deliver the feasibility study this December quarter and make resource consent applications early next year.
Property developers Winton Land, up 8c or 4.4% to $1.90, and CDL Investments, gaining 0.005c to 75c, also had their projects fast-tracked.
Winton is developing the 460,000sq m Sunfield community at Ardmore involving 3400 houses, a town centre, school and two retirement villages. CDL is planning 1350 residential sections and 35ha of commercial land at Ruakura, Hamilton, and 160-200 houses in Arataki Rd, Havelock North.
Sanford, up 3c to $3.93, has fast-track approval for two open-ocean salmon farming areas off the coast of Otago.
Other decliners were Scales Corp down 27c or 6.96% to $3.61; Being AI falling 6c or 9.23% to 59c; Allied Farmers shedding 3c or 3.8% to 76c; Accordant Group easing 2c or 4.17% to 46c; NZ King Salmon Investments decreasing 1.5c or 6% to 23.5c; and Colonial Motor down 15c or 2.19% to $6.70.
Blackpearl Group fell 11c or 7.86% to $1.29 after completing its $10.5m placement, including oversubscriptions, at $1.25 a share. Blackpearl is now raising a further $2m through a share purchase plan for existing shareholders.
Private Land & Property Fund, up 0.005c to $1.356, is buying a 35.7ha kiwifruit and avocado orchard in Katikati for $14.1m.
