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Keeping you up to date with the latest market moves, in association with Investment firm Jarden
Markets recovered as "dip buyers" emerged, with the S&P 500 gaining 0.5 per cent and the Nasdaq Composite edging back 0.3 per cent. Defensive sectors such as consumer staples, healthcare and industrials were the best performing sectors of the day, while on the other hand, tech companies continued to decline.
Casino stocks continued yesterday's rout as the worst performers in the market, Wynn Resorts, fell another 7.7 per cent, and Las Vegas Sands dropped another 7.2 per cent. Both companies have assets in Macau, and have been sold off in the US since the release of soft Chinese tourism data.
Ride-sharing services Uber Technologies and Lyft Inc. tumbled by -8.4 per cent and -10.7 per cent, respectively, after the Biden administration proposed new federal rules regulating employment status definitions. The market may be anticipating that these new regulations could be challenging for the ride-sharing industry, where companies often work with millions of "contractors" as part of the gig economy.
China-exposed chip stocks fell on Tuesday morning after the US announced new rules, which will require companies to apply for a licence to sell semiconductors or related manufacturing equipment to China. The rule applies to both US companies as well as foreign companies which use US equipment in the production of specific advanced computer chips. One of the stocks worst impacted by the news was Taiwan Semiconductor Manufacturing Company, which tumbled 8.3 per cent.
Meanwhile, the Bank of England announced another intervention in the bond market as volatility continued – warning of "material risk" to financial stability in the UK. The central bank has now committed to widening its purchases of government bonds, an action that has seemingly cooled the government bond market for now. European stocks fell for a fifth consecutive day in response.
Oil prices continued to retreat overnight, with global fears of a slowdown offsetting OPEC+ production cuts. Prices slid by another -1.5 per cent yesterday, down to US$94.70 a barrel. Bitcoin still remains unable to pick up momentum, down another -0.6 per cent to US$19,121. In foreign exchange, the NZD appreciated against most global currencies after a softening in the USD overnight.
The ASX 200 continued to slip yesterday, falling another -0.3 per cent in line with a softening Australian dollar. Leading the market down were mining stocks, which failed to recover after yesterday's decline, and tech stocks, which fell in line with a continued global sell off.
Several Australian data prints were released yesterday. The Westpac-Melbourne Institute consumer confidence indicator fell 0.8 per cent in October, driven by the continued strain of higher cost of living, rising interest rates and growing concerns regarding the near-term outlook for the economy. This was coupled with CBA's household spending intentions data, which showed a 0.5 per cent decline in spending intentions. The survey showed consumers were likely to spend less on health, fitness and home buying products, and more likely to spend on motor vehicles, entertainment and travel.
Australia's largest baby goods retailer Baby Bunting plummeted -20.3 per cent after warning that its financial year 2023 margins will be 230 basis points lower than expected. The company cited higher input costs that rose faster than expected, which they were unable to pass through to consumers in time.
The NZX 50 gained 0.4 per cent yesterday, breaking a three-day losing streak. Gentailers bounced back after yesterday's rout, while Sky added 5.2 per cent as the best performer of the day.
Air New Zealand confirmed it would begin stepping up non-stop flights between Auckland and Tokyo, in response to the Japanese border reopening to visa-free entry yesterday for the first time in more than two and a half years. While the national airline maintained services to and from Japan throughout the pandemic for freight purposes, it would now seek to increase the number of flights it operates to six times a week from December 12 before returning to a daily service from February 13. Japan was New Zealand's fifth largest international tourist market pre-Covid, with 100,000 visitors arriving in 2019.
Kiwifruit packaging company Seeka (-1.5 per cent) updated the market on a spring frost, which occurred on October 6 in kiwifruit growing areas in the Waikato region – noting it was the most severe late frost in over 10 years. Seeka estimates that it could see its volumes impacted by between 3.5 million and 4.0 million trays, albeit difficult to ascertain.
In New Zealand, the latest edition of Real Estate Institute of New Zealand House Sales data is set to be released, alongside migration data from Stats NZ. The Bank of Queensland is set to release its financial year 2022 results in Australia, while Commonwealth Bank and healthcare giant CSL will be holding AGMs.
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All market pricing and announcements are sourced from Refinitiv, NZX and ASX.
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