Jarden Brief: Australian consumer confidence rises due to easing lockdown restrictions

Lockdown conditions in Australia have hit the economy hard. Photo / Getty Images

Keeping you up to date with the latest market moves, in association with Investment firm Jarden

New Zealand:

The NZX 50 decreased by 0.5 per cent on Tuesday.

Sector performance was a mixed bag, with consumer cyclicals and real estate posting the biggest gains, increasing by 1.1 and 0.9 per cent, respectively.

The top gainer of the session was Synlait Milk. The milk producer corrected some of the losses made in the previous session, rising 3.3 per cent.

Film software company Vista Group International performed well for a second day in a row, rising 2.9 per cent. This could be linked to Disney's announcement last Friday, that all its movies, scheduled to be released until the end of 2021, will debut exclusively in theatres before being added to its streaming platform Disney+.

Rounding out the best performers was cancer diagnostics company Pacific Edge, rising 2.8 per cent.

Briscoes (+0.1 per cent) reported its half year results, ending July 2021, yesterday. The homeware retailer recorded a 22.6 per cent increase in total revenue to $358 million and a 69.6 per cent increase in net profit tallying to $47.5 million.

Healthcare and utilities underperformed, down 1.9 and 1.6 per cent, respectively.
Fisher & Paykel Healthcare was the top decliner of the day, falling 3.5 per cent. Energy retailers Mercury NZ (-2.9 per cent), Meridian Energy (-2.7 per cent), and Contact Energy (-1.4 per cent) were all among the worst performers – though declines were expected given the stocks went ex-dividend.

Pushpay Holdings corrected some of its gains made in the previous session, decreasing 3.2 per cent, after its 2021 investor day yesterday.

International Markets:

US markets were in the red at the time of writing with the S&P 500 down 0.4 per cent, the Nasdaq 0.2 per cent lower and the Dow Jones Industrial Average trading down 0.7 per cent.

The main US indices declined despite US inflation, measured by the Consumer Price Index, easing in August. Consumer prices rose 5.3 per cent from last year and 0.3 per cent in August. Both were 0.1 per cent short of market expectations.

Leading the indices downwards was financials and energy, falling 1.5 and 1.2 per cent, respectively.

Wynn Resorts fell 11.2 per cent and Las Vegas Sands declined by 10.4 per cent. These casinos, which both have a Macau presence, declined as the Macau government will be starting a 45-day consultation with the public to review the gaming industry. The potential for stricter regulation is a likely factor behind the downwards movement of both companies' share prices.

Media and technology company Comcast Corp declined by 6.1 per cent. The Chief Financial Officer talked to the business this morning about Covid-19 disruption and "a little bit of a slowdown to the net adds in the cable business".

The only sector to rise was technology, up 0.1 per cent.

Zimmer Biomet Holdings rose 6.2 per cent. The company produces orthopaedic reconstruction products. This price rise has the stock sitting just below its share price at the start of the year.

Perrigo Company was up 3.9 per cent and Teleflex rose 3.2 per cent. These healthcare companies' overnight rise could, in part, be a reflection of wider Covid-19 concerns. 
Apple unveiled the new iPhone 13, iPads, and Apple Watch overnight. Its share price was down 1.4 per cent, at the time of writing.

Rest of the World Markets:

The Hang Seng traded down again (-1.2 per cent), the Shanghai Composite declined by 1.4 per cent and the Nikkei made a 0.7 per cent gain overnight.

Commodities:

Gold rose 0.8 per cent to US$1,808.20 per ounce. WTI crude oil declined 0.1 per cent, now priced at US$70.37 per barrel. The 10-year US bond yield is now priced at 1.279 per cent, falling following the slightly less-than-expected increases to the Consumer Price Index.

Cryptocurrency rose overnight, with Bitcoin trading at US$46,477.47 (+3.9 per cent) and Ethereum up to US$3,363.42 (+3.6 per cent).

Australian Markets:

The S&P/ASX 200 traded up 0.2 per cent yesterday with the index finishing at 7,437.3 points.

After yesterday's Reserve Bank of Australia (RBA) meeting, Governor Phillip Lowe assured that interest rate hikes were well over the horizon as the economy continues to come to terms with the repercussions of prolonged lockdowns.

The leading sectors were energy and real estate, each making gains of 4.1 and 1.2 per cent respectively.

Oil and gas exploration companies Beach Energy and Woodside Petroleum led the way with a strong performance, up 7.21 and 6.2 per cent at yesterday's close, both trading higher with oil prices. Chalice mining advanced 6.5 per cent to finish second place on the single stock winner's podium.

On the flipside, healthcare (down 1.3 per cent) and consumer non-cyclicals (down 0.5 per cent) were the laggard sectors at yesterday's close.

Weighing down index performance was Brambles, which traded unfavourably (down 8.3 per cent) after the company revealed significant spending increases through an investor update.

Joining Brambles was Uniti Group, falling 5.0 per cent late in the day with a request from management for a trading halt, just before the close. This came after media reported that executive director Vaughan Bowen had been charged with insider trading. The company said the halt will "enable an orderly release of information regarding an announcement regarding a member of the executive team in response to media activity."

In other news, the ANZ Consumer Confidence Index for August bounced 3.0 per cent compared to the comparable July figure. With the increase primarily driven by a lift in NSW consumer expectations as the state prepared to ease lockdown restrictions, seeing the light at the end of a Covid-19 tunnel.

• For more information on the latest market moves, get in touch with Jarden.

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>