The spectacular news on US inflation was a boon for a big Las Vegas operator. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
International
US
US markets reacted positively to a US Consumer Price Index print which was lighter than expected. The CPI for October came in at 0.4 per cent and 7.7 per cent annualised, compared to an expected monthly incline of 0.6 per cent and annual rise of 7.9 per cent.
After the announcement, the Dow Jones Industrial Average surged 1,000 points, in the biggest rally since 2020 and up 2.8 per cent at the time of writing, the S&P 500 rose 4.5 per cent and the Nasdaq Composite was 6.1 per cent higher.
All 11 S&P 500 sectors were in the green, led by real estate, consumer discretionary and technology which rose 7.1, 6.9 and 6.3 per cent respectively.
US casino and hotel company Ceasars Entertainment surged 16.3 per cent, having previously been categorised as not well-positioned to fight inflation.
Earnings beats posted last week combined with an improved inflation outlook likely contributed to Ceasars being the top performer on the S&P 500.
Tech stocks rocketed higher Thursday after the CPI showed signs of easing inflation. The rally was wide-reaching across the tech sector, but cloud computing, e-commerce and payments companies showed particular strength.
Among them, Etsy increased 14.4 per cent and Amazon was up 11.1 per cent at the time of writing.
Republicans edged closer on Thursday to securing a majority in the U.S. House of Representatives while control of the Senate hinged on a few tight races.
Rest of the World
European stocks closed higher after the CPI print was published in the US, lighter than expected.
A European Central Bank member also commented that peak inflation in Europe "is almost within reach".
The European Stoxx 600 index rose 2.8 per cent and the FTSE 100 increased 1.1 per cent.
Asian markets were down as US midterm results rolled in and China's producer prices dropped.
The Hang Seng declined 1.7 per cent, the Shanghai Composite fell 0.4 per cent and the Nikkei lost 1.0 per cent.
Commodities
Brent Oil is currently trading 1.4 per cent higher at US$94.00 a barrel, following renewed demand following lighter than expected US inflation, while gold is trading 2.5 per cent higher to US$1,749.10 per ounce.
The US 10-year Treasury yield fell to 3.85 per cent following the US CPI print.
Cryptocurrencies clawed back some gains as the market sell off paused.
Bitcoin rose 12.7 per cent to US$17,710.70. Cryptocurrency has been in focus recently with trading firm FTX revealing liquidity issues following significant withdrawals.
The FTX exchange was valued at US$32 billion earlier in the week but is now looking for billions to stave off bankruptcy after rival exchange Binance pulled out of a deal to acquire it.
New Zealand
The NZX 50 Index declined 0.5 per cent yesterday, following the global trend from the US, Europe and Asian markets.
Healthcare and utilities sectors led the index downwards, falling 1.0 per cent each.
Auckland International Airport, Contact Energy and Pacific Edge were the top performers, up 1.5, 1.4 and 1.2 per cent respectively. In contrast, Serko, Arvida Group and Infratil were down 4.6, 3.2 and 2.9 per cent respectively.
Mainfreight released its first half financial year 2023 earnings. Total revenue rose 32.1 per cent and total net profit rose 65.9 per cent on the prior comparable period.
This was in line with Mainfreight expectations and guidance provided to the market during the October investor day.
Mainfreight noted that all five regions globally contributed positively. The company's shares fell 1.9 per cent yesterday.
Goodman Property Trust also released first half earnings and shares declined 1.0 per cent.
Goodman experienced a 6.8 per cent increase in operating earnings and outlined sustained customer demand with a 99.6 per cent occupancy rate.
Australia
The ASX 200 traded down 0.5 per cent on Thursday.
Xero released its first half 2023 earnings, with revenue up 30 per cent to NZ$658.5 million, while the net loss increased to NZ$16.1 million from NZ$5.9 million the previous year.
The succession of the CEO Steve Vamos was announced, with Sukhinder Singh Cassidy starting in the role next February. Xero declined 10.9 per cent yesterday.
Perpetual confirmed an earlier announcement by Pendal that it had requested a delay to the merger scheme process.
Investment firm Perpetual received and rejected an improved A$33 a share bid from a private equity and hedge fund consortium. This was an increase on the original A$30.00/share offer.
The announcement stated "It [the bidder] continues to materially undervalue the company". Perpetual rose 14.8 per cent and Pendal declined 10.9 per cent.
BHP Group has apologised for allegations of sexual harassment, racism and bullying at mine sites, with the Chairman stating, "We are determined to eliminate these harmful behaviours," at the company's AGM.
Australian miners have been in focus for this recently. BHP is reported to have spent US$200 million on improving security at mine accommodation.
BHP shares declined 1.5 per cent yesterday. It appears a decline by BHP's NYSE shares on Wednesday could have offset the AGM announcements.
Coming up today
In NZ the manufacturing PMI is coming out and in the UK there is a 3Q GDP release.
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All market pricing and announcements are sourced from Refinitiv, NZX and ASX.
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NZ GDP falls 1% in September quarter; analysts expected 0.4% decline.