Global markets were mixed overnight, US Markets (S&P 500 Index, -1.7%) down after following another hotter than expected US inflation print.
April’s inflations (CPI) increased +8.3%, ahead of +8.1% expected by the market showing its not slowing down since the 40-year high +8.5% increase reporting in March. The implication saw a market wide sell-off and fears the Fed would have to be more aggressive to curb inflation.
Most sectors traded lower, tech led losses the NASDAQ slumping -3.1%, as investors moved out of growth and favoured energy as oil prices rose. Mega-Cap’s were hit hard weighing down on the market Apple (-5.2%), Amazon (-3.2%), Microsoft (-3.3%) in a another broad-based sell off. Coinbase slumped -26.4% after the crypto exchange reported a weak quarterly result.
European markets (Stoxx 600 index, +1.6%) were up despite the hot US inflation print, gas and energy stocks rising on higher commodity prices.
Pushpay (PPH:NZX/PPH:ASX)
Pushpay shares slipped -2.4% after delivering their 2022 full year result, which didn’t show too many surprises, operating earnings (EBITDAF) coming in at US$62.4m inline with guidance and up +8% from last year.
Looking ahead Pushpay expects 2023 full year operating earnings to be between US$56m to $61m, the lower figure reflecting increased investment and revenue growth of 10-15%, and upbeat about processing volumes exceeding $10 billion and more than 20,000 Customers for the year ending 31 March 2025.
Pushpay declined to answer questions regarding the takeover interest which is what investors we hoping to hear about.
We are BUY rated on Pushpay, as an attractively price tech stock with sound growth ahead
Australia & New Zealand Market Movers
The Australian market was up (ASX200 index, +0.2%) on Wednesday snapping a three-day losing streak.
Healthcare and real estate stocks led gains, as major blue chips healthcare stocks like CSL (+2.1%), and Resmed (+2%). Material stocks were higher, major miners rebounding as n
Financials were weaker after NAB went ex-dividend and slumped -3.9%, its banking peers also trading in the red
The New Zealand market (NZX 50 index) was flat yesterday, as its heavy selling takes a break.
Some recent heavy losers try to crawl back loses Delegat Group leading gains up +5.3% and A2 Milk rising +4.8%.
Air NZ rose +4.3% after the NZ Government brought forward the full opening of boarders to July 31, unfortunately other travel stocks did not fear as well trading lower.
3 Things Markets will be Watching this Week
- Geopolitical risks remain elevated given the Russia/Ukraine conflict.
- Inflation data from US and China (CPI and PPI)
- Locally, earnings from Westpac, Xero, Pushpay and trading update from CBA