Jarden Brief: US markets plunge into the red again

US share markets plunged into the red again today. Photo / AP

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

International

US
All major US indices were in the red at the time of writing. The S&P 500 was down 3.5 per cent, the Nasdaq dropped 4.5 per cent and the Dow Jones Industrial Average declined 2.6 per cent.

Every sector declined with the worst performance coming from energy and consumer discretionary, down 5.9 and 5.2 per cent respectively.

Gold producer Newmont Corporation was the best performer on the S&P 500 at the time of writing, up 2.3 per cent after a small jump in the price of gold.

Walmart also made some gains to its share price, up 1.5 per cent, leaving the department store giant down 18.3 per cent over the past month.

For the second time this week, financial derivatives exchange company CME Group performs within the top three, up 1.4 per cent.

Royal Caribbean Cruises and Norwegian Cruise Line Holdings booked the biggest losses, both down 11.2 per cent at the time of writing. Both companies are over 40 per cent down from the start of the year.

Online marketplace provider Etsy closes out the bottom three performers with a 10.7 per cent decline. This represents a new 12-month low for the company's share price.

The Federal Reserve updated the fed funds rates on Wednesday with a 75-basis point hike, bringing the rate to a range of 1.5-2.75 per cent. Their future guidance puts the fed funds rate at 3.4 per cent by the end of the year.

Rest of the World

The Asian markets continued to have mixed performances overnight. The Shanghai Composite was down 0.6 per cent, the Nikkei jumped up 0.4 per cent, while the Hang Seng dropped 2.2 per cent.

European markets were all in the red with the FTSE down 3.1 per cent, the DAX dropped 3.3 per cent and the CAC declined 2.4 per cent.

Japan posted the largest trade deficit it has had in more than eight years at ¥2.385 trillion (US$17.8 billion). Contributing to this was higher energy imports for the country.

Commodities

Gold was in the green, up 1.8 per cent to US$1852.4 an ounce.

WTI Crude Oil jumped up 2.1 per cent to US$117.78 per barrel.

The US 10-Year Treasury rate declined a further seven basis points to 3.326 per cent at the time of writing.

Bitcoin and Ethereum were also in the red, down 2.7 and 5.4 per cent respectively.

New Zealand

The NZX 50 edged slightly higher yesterday, rising 0.1 per cent to 10,660 points. The market seems to have responded well to the US Federal Reserve hiking its benchmark interest rates by 75 basis points to combat inflation.

Cinema technology company Vista Group International led the index's gainers, advancing 6.5 per cent.

Sport and entertainment media provider Sky Network Television improved 5.8 per cent. The company announced they will not pursue an acquisition of Mediaworks.

Rounding out the top performers was retirement village and rest home operator Ryman Healthcare, increasing 4.1 per cent yesterday. On Wednesday the company announced their plans to build a $220 million integrated retirement village in Taupo. The village will feature town houses, serviced apartments, and a care centre catering for all needs. Further, Ryman's dividend payment date is today.

Industrial and agricultural products manufacturer Skellerup Holdings led the laggards yesterday, declining 3.1 per cent.

Package and mail service provider Freightways fell 3 per cent. The company stated it intends to release its June full year results on Monday 22 August.

Closing out the bottom movers was Auckland International Airport, dropping 2.4 per cent.

Stats NZ reported a 0.2 per cent fall in New Zealand's GDP for the March 2022 quarter, following a 3 per cent rise in the December 2021 quarter. This was driven by primary services and goods producing industries, down 1.2 and 0.1 per cent, respectively. Meanwhile, there were rises in government expenditure, household consumption expenditure and gross fixed capital formation.

Australia

The ASX 200 declined 0.2 per cent yesterday.

Sectors were mixed with seven of the 11 closing in the red. Australian real estate investment trusts (A-REIT) rose 1.5 per cent and telecommunications services was up 0.5 per cent. On the other hand, utilities was down 1.6 per cent and industrials lost 1.2 per cent.

Eagers Automotive was the best performer of the day, up 5.4 per cent after announcing an on market buy-back for a maximum of 256,933,106 ordinary shares. The vehicle retailer cited the positive market guidance and trading update released on 18 May, as well as stock market volatility in recent weeks as reasons for the buy-back.

Machine intelligence company Appen rose 5.1 per cent after announcing the issuance of 62,360 fully paid ordinary shares as a result of the vesting of performance rights.

Rounding out the outperformers was gold mining company Ramelius Resources increasing 5.1 per cent.

The biggest underperformer was Link Administration, sinking 10.4 per cent. The superannuation industry administration provider announced that an application for a Group Litigation Order had been filed in the English High Court. Additionally, the Australian Competition and Consumer Commission released a Statement of Issues in relation to the proposed acquisition of Link Administration by legal technology company Dye & Durham Corporation.

Poultry producer Inghams Group dropped 4.4 per cent and recycling company Sims decreased 4.1 per cent.

The Australian Bureau of Statistics released data which showed that the seasonally adjusted unemployment rate remained at 3.9 per cent and the seasonally adjusted participation rate increased to 66.7 per cent in May.

• 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