The European Central Bank is expected to increase the cash rate next month for the first time in more than a decade. Photo / Michael Probst
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
International
US
All major US indices were trading in the red at the time of writing, as investors focused on growth concerns after Europe's central bank signalled that they would raise interest rates for the first time in more than a decade to try overcome inflation.
Investors also await a key US inflation report (consumer price index) due on Friday. The S&P 500, Nasdaq, and Dow Jones Industrial average have all slipped 0.7, 0.9 and 0.5 per cent at the time of writing.
Only one sector out of 11 was performing well – consumer staples, up 0.2 per cent. The laggard sectors, materials, financials and communication services traded 1 per cent lower.
The leading single stock performer was NXP Semiconductors NV, up 6.3 per cent. NXP manufactures chips for eGovernment applications such as electronic passports and transport management systems. The stock is about to trade ex-dividend in four days. Investors who purchase NXP Semiconductors shares on or after June 14 will not receive the dividend. The market may have also been reacting to speculation that Samsung might look to acquire NXP.
Next in line was Fortinet, increasing 3.7 per cent at the time of writing. The cybersecurity company announced the launch of anti-risk service FortiRecon, powered by a combination of machine learning and automation. The big-box store company Costco Wholesale, rose 2.9 per cent. The company opened its sixth business centre in Canada.
Conversely, Moderna led the bottom performers, down 7.9 per cent despite the biotechnology company releasing data from its recent study on an Omicron 'bivalent' booster.
This revealed that the booster offers a better antibody response against Omicron – one month after injection – compared to the company's original vaccine. Moderna stated that it plans to submit data to the Food and Drug Administration in the coming weeks. If Moderna receives approval, doses of the updated vaccine and booster could be ready to ship "as early as August".
International cruise line Carnival Corporation dropped 7.7 per cent at the time of writing. Norwegian Cruise Line Holdings (-7.4 per cent) and Royal Caribbean Cruises (-6.0 per cent) followed. Although the cruise industry is starting to recover from the pandemic, there are still challenges, including debt burdens, ongoing pandemic restrictions and a weakening economy.
Rest of the World
Asian markets underperformed overnight. The Shanghai Composite fell 0.8 per cent, the Hang Seng dropped 0.7 per cent and the Nikkei remained flat.
European markets were down. The FTSE (-1.5 per cent), the DAX (-1.7 per cent) and the CAC (-1.4 per cent) all experienced a volatile week. The European Central Bank confirmed its intention to raise interest rates at the policy meeting next month and downgraded its growth forecasts.
Commodities
Gold traded 0.2 per cent lower to US$1,851.9 per ounce.
WTI Crude Oil also experienced a decline, falling 0.2 per cent to US$121.8 per barrel.
The cryptocurrency market turned a corner, and was in the green, with Bitcoin having increased 0.1 per cent and Ethereum trading 0.5 per cent higher.
The US 10-year Treasury rate advanced one basis point 3.034 per cent, alongside a one basis point fall in the 30-year rate, to 3.17 per cent.
New Zealand
The NZX 50 continued its downward trend yesterday, decreasing 0.5 per cent as investors remain cautious around the global economic outlook.
The market was led by NZX Limited, up 5 per cent. Serko gained for the third day in a row, rising 3.7 per cent. Despite the positive week, the company is still down 47.3 per cent from this time last year. Scales Corporation increased by 3.6 per cent.
NZX and ASX dual-listed bank Westpac led the bottom movers, declining 4.1 per cent, following the Reserve Bank of Australia's interest rate hike earlier this week.
Freight technology company Eroad fell 3.2 per cent while Heartland Bank dropped 2.9 per cent.
The Reserve Bank of New Zealand announced on Thursday that in July they will begin selling government bond holdings. Every fiscal year they will sell their holdings at a rate of $5 billion, not ruling out the use of quantitative easing if necessary.
ANZ released their NZ Truckometer yesterday, announcing a 0.1 per cent increase in the light traffic index in May, and a 1.7 per cent fall in heavy traffic. The report said that the current two months of traffic data suggests GDP growth may have been positive in quarter two as well.
Genesis Energy confirmed CEO Marc England will depart from his role on October 14, 2022, following his notice of leave two weeks ago. Tracey Hickman will step into England's role on his departure until a new chief executive is appointed.
Australia
The ASX 200 closed 1.4 per cent lower at 7,019.7 points.
The materials sector slid 2.2 per cent, financials fell 2.1 per cent and Australian real estate investment trusts declined 1.6 per cent. Energy was the sole sector to close in the green, up 0.6 per cent.
Magellan Financial Group rose 2.2 per cent. The investment firm announced the return of co-founder Hamish Douglass in a consultancy position providing investment guidance.
Cloud management company Megaport improved 2 per cent.
Crown Resorts gained 2 per cent. Casino regulators in New South Wales and Victoria approved the gambling and entertainment company's A$8.9 billion buyout by private equity house Blackstone. The deal is now contingent on approval from the West Australian Gaming and Wagering Commission.
Retirement community provider Lifestyle Communities fell 7.7 per cent. Data company Appen finished 7.1 per cent lower. Clinuvel Pharmaceuticals decreased 6.8 per cent.
Following fire damage at its Dandenong medical waste processing plant, Cleanaway Waste Management advised of a monthly loss between A$2 million and A$3 million in its health services division. Substitute medical waste disposal options are being considered, including the utilisation of third parties, and pursuance of temporary licenses at alternate Cleanaway locations.
• 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
NZ GDP falls 1% in September quarter; analysts expected 0.4% decline.