Global markets were higher overnight, as US Markets (S&P 500 Index, +1.2%) traded with a more positive tone following small signs of progress in negotiations between Russia and Ukraine. Moscow cut military action around Kyiv and northern Ukraine, while Ukraine proposed the adoption of neutral status in exchange for international security guarantees.
The CBOE VIX volatility index (fear-gauge) slipped to 18.9, its lowest level since mid-January as investors have become calmer after a period of extreme volatility.
Real Estate and Tech stocks led gains with all sectors trading higher except for Energy. The price oil also slipped, and at one point went below $100/barrel which saw travel stocks rise. Shares of Moderna rose 4.4% after U.S. regulators approved an additional Covid vaccine booster shot for people age 50 and over. Apple shares rose another +1.9% up 11-days in a row, its longest rally since 2002.
European markets (Stoxx 600 index, +1.7%) were up on potential progress of peace talks, which saw most sectors trade higher except for resources and oil and gas stocks.
Locally, The Australian government announced its budget last night which looks to help low to medium earners and targets inflation with one off lump sum payments, and reduction in fuel excise by 22 cents per share. The budget also sees increased spending into road and rail projects, defence industries and cyber security.
Crown Resorts (CWN:ASX)
Crown Resorts (CWN) shares were up +0.9%, hitting a fresh 9-month high after Blackstone’s $8.9 billion ($13.10 per share) takeover proposal has been given regulatory approval from Foreign Investment Review Board (FIRB).
Blackstone’s latest takeover proposition – the first to be approved by Crown’s board – saw the casino operator offered $13.10 cash per share, after the board initially rejected the $11.85 per share offer in March 2021.
We are HOLD rated on Crown
Australia & New Zealand Market Movers
The Australian market was higher yesterday (ASX200 index, +0.7%) for a sixth consecutive day, hitting a 11-week high.
A strong lead from Wall street saw tech stocks lead gains, followed by consumer discretionary. Retail sales for the month of February rose +1.8% month on month, ahead of expectations boosting market expectations as staffing shortages ease and shoppers return post omicron peak.
Telstra rose +1.6% after completing the legal structure for its T22 strategy.
The New Zealand market edged higher on Tuesday (NZX 50 index, +0.1%) as earlier gains were wiped out.
Fisher and Paykel Healthcare rose +1.4% as investors try to find some support after its 4-day decline.
3 Things Markets will be Watching this Week
- Geopolitical risks remain extremely elevated with the Russia/Ukraine conflict.
- Highlights this week include US Non-Farm Payroll e,ployment data and China PMI report
- Locally, Australia will release their fiscal budget, and Synliat Milk reports its result.