Jarden Brief: Bitcoin rises after Binance gets French regulator approval

Bitcoin rose 3.3 per cent. Photo / AP

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

International
US

At the time of writing, the Dow Jones Industrial Average had risen 0.2 per cent. The S&P 500 and the Nasdaq were down 0.8 and 0.1 per cent, respectively.

Energy was the best performing sector on the day, up 1.4 per cent. This was followed by utilities (+0.8 per cent) and consumer staples (+0.5 per cent). In the red were real estate and consumer discretionary, both falling 1.3 per cent, and the technology sector was down 0.3 per cent.

Energy technology solutions provider Generac Holdings led the way, up 9.2 per cent at the time of writing. This follows a positive earnings report released prior to market open which exceeded many analysts' estimates.

Paycom Software, providing human capital management services, rose 8.6 per cent.

Packaging company Amcor hit a new 52-week high, increasing 8.3 per cent to US$12.97 ($19.80) per share. The company had recently announced that sales for the third quarter were up by 16.0 per cent.

Underperforming the market was Johnson Controls International, an energy and transportation solutions company, which fell 12.8 per cent. This followed an earnings report released prior to market open that appears to have disappointed the market, with the share price at US$54, a new 52-week low.

Decreases in share price were also seen by cloud services provider Akamai Technologies (-10.4 per cent), and semiconductor producer Skyworks Solutions (-9.0 per cent). This drop brings Skyworks Solutions to a new 52-week low at $108.70 per share.

The Federal Open Market Committee announced the second hike in the federal interest rate since 2018, with an increase of 50 basis points. When asked about the possibility of a 75 basis point rise in the future, US Federal Reserve Chairman Jerome Powell responded that it is "not something the Committee is actively considering".

Powell has also confirmed the plan to reduce the Reserve's balance sheet starting in June, which currently contains US$9 trillion in assets.

Rest of the world

The Shanghai Composite rose 2.4 per cent overnight. Meanwhile, the Hang Seng and Nikkei fell 1.1 and 0.1 per cent, respectively.

European markets performed poorly, the CAC (-1.2 per cent), FTSE (-0.9 per cent), and DAX (-0.5 per cent) were all in the red.

Commodities

Commodities were in the green at the time of writing. WTI Crude Oil increased 5.0 per cent to US$107.55 per barrel while natural gas rose 5.3 per cent.

Gold prices have dropped slightly, down 0.1 per cent to US$1868.4 per ounce.

Bitcoin and Ethereum are up 3.3 and 2.6 per cent, respectively. This may be connected to Binance, the world's largest cryptocurrency exchange, receiving approval from French regulators to operate in the country's market.

The 10-Year US Treasury yield rose three basis points to 2.983 per cent.

New Zealand

The NZX50 closed flat yesterday at 11,675.21 points (-0.01 per cent).

The Fonterra Shareholders Fund improved 2.1 per cent following an 8.5 per cent decrease in international milk prices at the Global Dairy Trade auction.

Auckland International Airport was another strong performer, gaining 1.8 per cent.

Rubber product company Skellerup Holdings fell 3.5 per cent.

Synlait Milk and The a2 Milk Company followed with declines of 3.2 and 2.9 per cent, respectively. Investors may have reacted negatively to the continued impact on supply chains of Covid-19 restrictions in China.

Statistics New Zealand labour market data for the March quarter has revealed a seasonally adjusted unemployment rate of 3.2 per cent, unchanged from the December 2021 quarter and 1.4 percentage points lower on an annual basis.

The underutilisation rate, which evaluates excess labour market capacity, saw an annual decrease of 2.8 percentage points but held steady on a quarterly basis, notching a slight 0.1 percentage point increase compared to the fourth quarter of 2021.

At 3.0 per cent, annual wage inflation reached its highest level since the first quarter of 2009. Private sector wage growth (3.1 per cent) outpaced the public sector (2.7 per cent).

The Reserve Bank's latest financial stability report revealed that house prices, despite a seasonally adjusted 4.3 per cent reduction since November 2021, "remain above sustainable levels". While a measured correction to sustainable prices is preferable, the RBNZ says a larger fall "remains a possibility." The bank noted that recent buyers, with higher debt-to-income and loan-to-value ratios, will be more vulnerable as living costs and interest rates climb.

Australia

The ASX 200 fell a slim 0.2 per cent yesterday to 7304.70 points following Tuesday's first interest rate rise in more than a decade.

Sectors were mixed with six of 11 closing lower. The decliners were led by Australian real estate investment trusts and consumer discretionary, down 1.5 per cent and 1.1 per cent, respectively. Energy and financial were the top gainers, up 0.8 and 0.7 per cent respectively.

HUB24 led the top performing stocks, rising 3.9 per cent.

Packaging solutions company Orora increased 3.4 per cent and Virgin Money gained 3.0 per cent.

Automotive accessory manufacturer ARB Corporation led the bottom movers, down 11.2 per cent. The company released a market update sharing projected financial year 2022 revenues of A$700 million ($775.8m). Its share price drop may be connected to higher reported costs and strains on global supply chains.

Zip Co fell 10.8 per cent and Lifestyle Communities dropped 7.9 per cent.

ANZ released their 2022 half-year results yesterday reporting a statutory profit after tax for the half-year ended 31 March 2022 of A$3,530m, a 10 per cent rise on the previous half-year. However, the bank's cash profits from continuing operations were A$3.1 billion, a 3 per cent drop on the previous half-year. Included in the announcement was a A$0.72 interim dividend payable on 1 July, falling in line with market expectations. ANZ closed 0.4 per cent lower at A$27.38.

Disclosure: Jarden is advising Zip Co on the acquisition of Sezzle Inc.

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

Disclaimer: The Jarden Brief is provided for general information purposes only. It reflects views and research available 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. The Jarden 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 financial advice disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement/ Full disclaimer available at: https://www.jarden.co.nz/wealth-sales-and-research-disclaimer