Devon Funds Management head of retail Greg Smith said that while it’s currently quiet in terms of corporate reporting, next week should see an increase in market-driving announcements.
“Particularly with the US inflation and retail sales numbers due and the head of the Fed meeting at the end of the month,” Smith said.
“There’s probably still a lot of interest in what the Fed’s gonna do and whether they deliver on some of the promised rate cuts. It was insightful that in the Fed minutes, they mentioned the potential inflationary impact of Trump’s policies.”
Spark New Zealand rose by 3c or 1.08% to $2.93, with 1,264,348 shares trading hands to the value of $3,694,127.05, while Infratil also reported a slight growth of 0.42% to $12.03 with 542,288 shares having been traded to the value of $6,522,083.66.
US Stock markets were rattled Wednesday by worries about incoming US president Donald Trump slapping tariffs on imports as well as the fading prospects for interest rate cuts.
A CNN report that Trump is considering declaring a national economic emergency to provide legal cover to impose tariffs on all imported goods sent US and European stocks into the red and the dollar higher against major rival currencies.
“Perhaps more than even during his last term of office, traders will need to pay close attention to everything coming from the new president,” said David Morrison, senior market analyst at Trade Nation.
“And, just to prove a point, the dollar has soared while risk assets have tumbled on reports that Trump is mulling a national emergency declaration to allow for a new tariff programme.”
US bond yields have also risen in recent days on the fading expectations of additional US interest rate cuts.
Focus now turns to Friday’s release of the key non-farm payrolls report, which will provide a fresh snapshot of the US economy.
The Nasdaq was down by 0.1%, closing at 19,478.88, while the S&P 500 rose by 0.16%, closing at 5,918.25.
Asian markets struggled Thursday after the tepid lead from Wall Street, as China had its core inflation rate rise slightly to 0.4%, up from 0.3% in November.
“I suppose it showed that stimulus support is starting to work in China a little bit, so that’s quite positive,” Smith said.
“China last year just sort of ambled along obviously as New Zealand’s biggest customer, it didn’t perk up as much as expected. It’s probably a bit of a wildcard as far as markets go this year, expectations are pretty low about what China’s gonna do.”
In early trade, Hong Kong edged up while Shanghai fell as investors assessed data showing Chinese inflation eased in December, and officials face calls to ramp up stimulus to boost consumption.
Leaders have unveiled a range of measures to kickstart the world’s number two economy with a focus on getting people to spend and support for the troubled property sector.
“Given the various high-level meetings and policy communiques over the past month, it appears a safe bet to expect more aggressive fiscal policy support from China in 2025, as well as continued monetary policy easing,” said Lynn Song, chief economist for Greater China at ING.
- Additional reporting AFP
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
