The pandemic has done little to quell house price growth in Australia. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
Yesterday, the NZX50 climbed 1.1 per cent to 12,696.39 points.
Healthcare and consumer non-cyclical stocks were performing well, up by 3.8 and 1.6 per cent, while energy and real estate stocks were down, down 1.6 and 0.5 per cent, respectively.
Medical device producer Fisher & Paykel Healthcare was the best performer of the day, rising 5.6 per cent. Investors reacted to its competitor Phillips recalling up to three million of its ventilator products due to concerns that a type of foam in the devices could release harmful, possibly carcinogenic particles.
ASX-listed ResMed (+6.8 per cent), as well as Fisher and Paykel Healthcare will both benefit from the opportunity to fill the newly created space in the market with their own ventilators.
Next in line was a2 Milk Company (+4.3 per cent), increasing for a second day in a row and followed closely followed by its supplier Synlait Milk, which rose 3.2 per cent.
The worst performer in Tuesday's session was outdoor retailer, Kathmandu Holdings, falling 3.1 per cent. Port of Tauranga was also booking losses, down 2.2 per cent. Rounding out the worst performers of the day was Chorus, down 2.1 per cent.
Scales Corporation (-2.1 per cent) announced yesterday that the company will no longer pursue the purchase of wine maker Villa Maria. The agribusiness had reconfirmed its interest in Villa Maria at the annual general meeting last week. The due diligence and other transaction costs from the process are said to be recognised in Scales' half-year results to 30 June.
INTERNATIONAL
US
US markets were in the red at the time of writing ahead of the result of the Federal Reserve two-day policy meeting which started overnight.
While it is not expected to change the current monetary policy settings, the Fed's commentary on inflation, interest rates and the overall state of the US economy generally have significant impacts on the market.
The S&P 500 was down 0.1 per cent, the Nasdaq had fallen 0.6 per cent and the Dow Jones Industrial Average was down 0.2 per cent.
The worst performing sectors were Real Estate and Communication Services, falling 0.8 and 0.5 per cent, respectively.
The best performing sectors were Energy, up 1.6 per cent, and Utilities, up 0.7 per cent.
Diamondback Energy rose 4.3 per cent and was the top performer of the S&P500 at the time of writing. These gains for the oil and natural gas company are likely linked to the 1.5 per cent rise in oil price.
Synchrony Financial was another outperformer, rising 3.2 per cent. The consumer financial services company experienced an improved 2.2 per cent credit card delinquency rate in May, down from 2.4 per cent in April. There were also rumours that it could be in the running to replace JPMorgan Chase as the partner brand for the upcoming Amazon credit card.
The biggest underperformer at the time of writing was Freeport-McMoRan, which had fallen 5.2 per cent. The mining company has slipped on the back of declining copper prices. This week copper reached a seven-week low, falling an additional 4.2 per cent overnight.
Alexandria Real Estate Equities had declined by 5.0 per cent, at the time of writing. Yesterday the real estate investment company increased its share offering from 6.5 million shares to 7 million shares at US$184 per share.
Short-squeezed stock AMC Entertainment rose another 4.8 per cent today, following a 15 per cent rise the previous day.
Asia
Of the major Asian indices, the Shanghai Composite fell 0.9 per cent, the Hang Seng fell 0.7 per cent and the Nikkei rose 1.0 per cent.
Commodities
Gold fell 0.5 per cent to US$1,857.50 per ounce, trading in a narrow range prior to the Fed result. Gold is traditionally an inflation hedge, so investors might expect that if the federal Reserve upgrades its inflation expectations that gold price will likely increase. The US-10 year bond has also stayed relatively unchanged at 1.497 per cent.
Cryptocurrency made gains overnight. Notably, Bitcoin is up again today rising 4.2 per cent after El Salvador became the first country in the world to accept it as legal tender. Ethereum is up 3.0 per cent.
The oil price rose 1.5 per cent to a post-pandemic high, trading at US$71.52.
Australia
The S&P/ASX 200 advanced to a record high of 7379.5 points on Tuesday with the index finishing up 0.9 per cent.
Also reaching record highs were Sydney house prices, with the average house now above A$1 million as the total value of residential property hit A$550 billion in Australia's most populous city. The Reserve Bank of Australia meeting minutes which focussed on the extent of quantitative easing (QE) measures to be carried out over the next few years, said little on the current house price situation.
The leading sectors were Healthcare as well as Academic & Educational Services, recording gains of 2.6 and 2.5 per cent, respectively. On the flip side, Real Estate (down 0.1 per cent) was the only sector to make a loss.
Mining company Iluka Resources was also strong following a weak performance over the last month, advancing 5 per cent.
Weighing down index performance was a single stock loser, Austal Ltd, which fell 9.0 per cent. The shipbuilding company traded unfavourably after releasing an underwhelming guidance update to investors.
Joining Austal was online gambling service Pointsbet Holdings Ltd. The company slumped to a 6.5 per cent loss, offsetting the gains it achieved last week after announcing it would be expanding its online wagering service into Maryland (USA), increasing its overall customer base.
Coming up Today:
Auckland International Airport will be releasing its April Sales & Revenue numbers later today, while New Zealand King Salmon and Pushpay will be hosting their AGM's.
In the UK, the CPI and PPI inflation numbers will be released after our markets close.
Meanwhile, the FOMC rate decision in the US is being eagerly awaited by market speculators – and could potentially have an effect on the strength of the dollar depending on the result.
• 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>
'Sale of several non-strategic property assets [to] re-cycle capital, reduce debt.'