Jarden Brief: Global markets mixed overnight

NZX50 continued its downward trend yesterday, some indices recovered overnight. Photo / Getty Images

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

International
US

The major US indices were mixed at the time of writing. The S&P 500 and Dow Jones Industrial Average were down 0.4 and 0.6 per cent respectively while the Nasdaq was up 0.2 per cent.

Energy and information technology were the only two sectors in the green, up 0.6 and 0.5 per cent respectively. On the other hand, utilities (-3.0 per cent) and consumer staples (-1.5 per cent) were the worst performers at the time of writing.

FedEx Corporation was the best single stock performer, up 14.1 per cent. This increase may have been driven by a quarterly dividend increase of more than 50 per cent alongside shareholder return performance being added as a metric tied to their executive compensation programme.

Information technology provider Oracle was also in the green with a 10.0 per cent increase. The company reported results that suggest its acquisition of healthcare records provider Cerner Corp will help drive growth for the company.

CF Industries, a manufacturer of hydrogen and nitrogen products, closes out the top three performers with an 8.4 per cent rise in its share price. This brings CF Industries 31.3 per cent up from the start of the year.

Swimming pool supplies and equipment distributor Pool Corporation leads the underperformers, down 7.6 per cent at the time of writing.

American Water Works Company also declined 5.1 per cent, down to US$132.82, a new 52-week low for the company.

Financial holding company Northern Trust was rounding out the bottom movers, down 4.8 per cent.

Rest of the World

Asian markets were also mixed. The Shanghai Composite was up 1.0 per cent, the Nikkei dropped 1.3 per cent while the Hang Seng remained unchanged.

European markets were all in the red with the FTSE, the DAX and the CAC down 0.3, 0.9 and 1.2 per cent respectively.

The Bank of Japan is expected to announce its interest rate review on Friday. Market expectations are for no change amid a 15.0 per cent decrease in the JPY/USD since the start of the year.

Commodities

Gold dropped a further 1.1 per cent to US$1,812 per ounce, at the time of writing.

Oil and natural gas were both in the red. Oil fell 1.9 per cent to US$118.66, while natural gas dropped 16.9 per cent. Even with this decline, natural gas remains over 90.0 per cent up from the start of the year.

Bitcoin and Ethereum continue their declines, down 4.6 and 1.6 per cent respectively.

The US 10-year Treasury rate continues its climb with another 7.5 basis points increase to 3.446 per cent.

New Zealand

The NZX 50 continued its downward trend yesterday, falling 2.6 per cent to 10,641.36 points.

The index is now in bear market territory, 21.8 per cent lower than the record closing high in January 2021. The market may be reacting to the significant Wall Street sell-off.

The a2 Milk Company recovered some of its losses and was the best performing stock of the index yesterday, regaining 1.6 per cent.

Rounding out the top movers was global tourism operator Tourism Holdings and financial services group Heartland Group Holdings, increasing 1.2 per cent and 1.1 per cent, respectively.

Transport technology and services company EROAD led the laggards yesterday, regressing 7.5 per cent. The company is now down 63.3 per cent year to date.

Mobile payment solutions company Pushpay Holdings dropped 6.5 per cent, ahead of its AGM tomorrow.

Closing out the bottom movers was outdoor, lifestyle and sports company KMD Brands, declining 6.3 per cent, as the company went ex-dividend yesterday.

The New Zealand dollar continued its decline, dropping another 20 basis points to US$0.626.

New Zealand's first quarter 2022 GDP results will be published tomorrow.

Australia

The ASX 200 dropped 3.6 per cent yesterday to set a new 100-day.

All 11 sectors closed in the red. Energy was down 4.9 per cent, information technology lost 4.5 per cent and materials decreased 4.4 per cent. The sectors booking the smallest losses were telecommunications services and utilities, down 1.7 and 1.8 per cent, respectively.

Medical devices company Polynovo was the top performer, up 7.8 per cent. Domino's Pizza Enterprises rose 2.0 per cent and share register operator Computershare increased 1.6 per cent.

Conversely, buy now pay later company Zip plummeted 15.9 per cent. Chalice Mining dropped 14.2 per cent after the gold ore miner released a notice of initial substantial holder which showed State Street Corporation had become a substantial holder last Friday.

Commercial real estate company Unibail-Rodamco-Westfield rounded out the bottom movers with a decline of 11.7 per cent after announcing an agreement to sell Almere Centrum in The Netherlands for €155 million. The transaction for the 87,000 square meter high-street retail asset is expected to be complete in July.

National Australia Bank released its Monthly Business Survey yesterday, which noted "Business confidence and conditions both eased in May, but conditions remain strong alongside forward orders."

Looking ahead, Westpac is expected to release its Consumer Confidence report today and employment data is scheduled to be released from the Australian Bureau of Statistics on Thursday.

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

Jarden is advising Tourism Holdings Limited on an agreement to merge with Apollo Tourism and Leisure Limited.

Jarden is advising Zip Co on its definitive agreement to acquire Sezzle.

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