New Zealand Market Movers
The New Zealand market (NZX 50 Index, +0.3%) closed last week on a mildly positive note.
Two tourism plays, SkyCity Entertainment (+3.3%) and Tourism Holdings (+2.0%), advanced on the day. SkyCity held its 2022 annual meeting on Friday where it reported quarter 1 Earnings Before Interest, Tax, Depreciation, and amortisation for the 2023 Financial Year approximately +10% above pre COVID-19 levels on a like-for-like basis. However, the casino operator omitted to provide full-year guidance and couldn’t say if it would be reflective of its quarter 1 performance.
Pushpay (0.0%) shares were placed in a trading halt on Friday and is expected to begin trading again this morning after the company updates the market about a revised takeover bid it received from its suitor.
Serko (-3.1%) was one of the day’s biggest losers. The Kiwifruit grower announced on Friday that it intends to release its results for the six months to 30 September 2022 next month, on the 23 November.
Australia Market Movers
The Australian market (ASX 200 Index, -0.9%) moved lower on Friday as iron ore prices plunged to their lowest level since 2020, and Fortescue Metals (-8.2%), BHP (-5.0%), and Rio Tinto (-4.4%) were pinched.
Macquarie Group (0.0%) traded sideways after reporting an interim half-year net profit of $2.3 billion, which is a -13% decline on its previous half-year period, but +13% percent higher than the half=year profit it reported this time last year. Looking forward, Macquarie Chief Shemara Wikramanayake said the company would maintain “a conservative approach” but was on the lookout for investment opportunities for its $30 billion in “dry powder”.
Looking forward, the Reserve Bank of Australia delivers its seventh interest rate hike on Tuesday. Most economists are expecting a 25-basis-points rate hike.
Europe Market Movers
European markets (Stoxx 600 Index, +0.1%) closed marginally higher on Friday, recovering from an earlier -1.1% decline. The Euro Area’s annual inflation rate to October is due this Monday, where it is expected to hit up to 10.4%, from its current 9.9%. This will keep pressure on the European Central Bank who hiked interest rates by 75-basis-points to 2.0% on Thursday, which is the highest level for borrowing costs since 2009.
US Market Movers
US markets (S&P 500 Index +2.5%) climbed on Friday despite Amazon (-6.8%) adding its name to the list of tech stocks investors are avoiding. Alphabet, Amazon, Meta, and Microsoft lost a combined $350+ billion in market capitalisation in the last 5 trading days after reporting their latest earning results. Amazon reported on-par quarterly revenue (~$127 billion) after the bell on Thursday but issued less-than-expected sales guidance for the next quarter (~$144 billion vs. $155 billion).
In addition to several important earnings reports due this week from the US, we also get employment data and the Federal Reserve’s latest interest rate decision. Markets are expecting a 75-basis-points hike on Thursday.
Stock In Focus
Apple (AAPL.NASDAQ)
Apple (+8.0%) is the only bright spot among the usual suspects after it reported upbeat quarterly revenue ($90 billion vs. $88.9 billion expected). Apple increased revenue by +8% during the quarter but would have been double digits according to CEO Tim Cook, but it was hurt by the strong US dollar eating into global revenue sources.
We are Buy rated on Apple, but still see further volatility and possible downside across the market over the near-term, therefore investors should still be patient and prudent.
What Markets will be Watching this Week (UTC +13)
Monday
EA Inflation Rate Year-on-Year Flash OCT
Tuesday
AU RBA Interest Rate Decision
Wednesday
US Manufacturing PMI OCT
US JOLTs Job Openings SEP
Pfizer earnings
AMD earnings
Airbnb earnings
Thursday
US ADP Employment Change OCT
US Fed Interest Rate Decision
Estee Lauder earnings
Booking Holdings earnings
Friday
GB BoE Interest Rate Decision
Starbucks earnings
Saturday
US Non Farm Payrolls OCT
Berkshire Hathaway earnings
