US markets fell on this news with the S&P 500 and the Nasdaq Composite both down 0.5 per cent and the Dow Jones Industrial Average falling 1.1 per cent at the time of writing.
Healthcare provider UnitedHealth Group shares are currently trading at a decrease of 7.7 per cent after a presentation by the Chief Financial Officer at its conference saying an increase in medical procedures for seniors, which were postponed during the Covid-19 pandemic, is leading to higher costs for the business.
Alphabet Inc-owned company Google is enhancing its shopping features with generative AI technology to compete with e-commerce giant Amazon.
The company introduced new capabilities that help users visualise apparel on different body types and find products using search and image-recognition technology.
Google aims to become a shopping destination and connect merchants with consumers, particularly targeting younger audiences.
It also unveiled AI-powered features for travel research and mapping routes. Google shares were trading lower by 0.5 per cent to US$123.1 a share.
Commodities
Brent Oil is currently trading down by 1.3 per cent to US$73.4 a barrel, while gold is trading flat at US$1,944 per ounce.
New Zealand
The NZX 50 closed at 11,678.6 points yesterday having increased 0.2 per cent.
Auckland Airport shares dropped 3.6 per cent yesterday ending the day at a price of $8.30 a share. The company announced on Wednesday a change in its dividend policy due to ongoing infrastructure investments.
The company will pay 70 per cent to 90 per cent of underlying net profit as dividends, down from 100 per cent previously targeted.
The change aligns Auckland Airport’s dividend approach with other major infrastructure companies in Australasia. The final dividend payment for the 2023 financial year will be determined by the board in August when the year-end financial results are approved.
Winton Land Group held its investor day on Wednesday. The company reaffirmed 2023 financial year guidance issued in February and told investors it expects to report profit for the year towards the lower end of guidance between $72.4 million and $82.4 million.
Winton shares traded up 2.3 per cent at the end of the day to a price of $1.80.
The Government’s carbon auction failed for a second time yesterday as bids fell short of meeting the confidential reserve price.
A total of 8.9 million units were offered, including allocated units and those unsold from the previous auction. The emissions trading scheme is currently under review which could bring changes to the market and investor confidence.
Stats NZ released numbers showing food prices continued to rise in May, increasing by 0.3 per cent compared to April, contributing to a yearly increase of 12.1 per cent.
Fruit and vegetable prices had the largest yearly increase of 18.4 per cent, but dropped by 2.9 per cent in May compared to April.
Grocery foods were the main driver of the yearly price increase, while non-alcoholic beverages contributed the most to the monthly increase. Overall, there has been a gradual slowdown in food price growth in recent months.
Rest of the World
British economic output grew by 0.2 per cent month-on-month in April, in line with economists’ expectations in numbers released by the Office for National statistics.
European markets saw small increases with STOXX 600 seeing a 0.4 per cent increase and the FTSE trading 0.1 per cent higher.
Asian indices were in the red overnight, the Nikkei down 0.6 per cent and the Hang Seng posting a 0.1 per cent loss.
Australia
Australian shares closed slightly higher on Wednesday with the ASX 200 up 0.3 per cent yesterday to 7161.7 points.
Biotechnology company CSL shares fell 6.9 per cent yesterday after announcing a downgrade to the 2023 financial year profit forecast.
The company said it is expecting a foreign currency headwind of about US $230 to US $250 million, an increase from the previously signaled US $175 million.
Forecast profit growth for the financial year 2024 is between 13.0 to 18.0 per cent, or US $2.9 to US $ 3.0 billion excluding the impact of foreign exchange movements if achieved.
Rising 2.5 per cent, the materials sector was the best performing sector of the day. Mineral Resources climbed 5.0 per cent, BHP Group shares rose 3.6 per cent, Fortescue Metals increased 4.3 per cent and Rio Tinto added 2.9 per cent over the day.
In a weekly survey conducted by ANZ-Roy Morgan, it was reported that consumer confidence in Australia in June reached its lowest point in three years.
Consumer confidence shifted down 3.1 points with one senior ANZ economist attributing the decline to factors such as the recent increase in the RBA cash rate to 4.1 per cent and a fall in confidence among homeowners and renters.
Coming up today
US: Initial Jobless Claims, Retail Sales, Empire Manufacturing, Philadelphia Fed Business Outlook
Eurozone: ECB Main Refinancing Rate, Trade Balance
China: Fixed Assets, Retail Sales; Australia: Employment; NZ: Q1 GDP.
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