Global stocks were lower overnight, US markets (S&P 500 down -0.9%) as concerns about the global economic comeback from covid-19 was questioned.
Japan declaring a state of emergency in Tokyo for the upcoming Olympics as the country deals with a rebound in covid cases just ahead of the upcoming olympics, and Jobless data in the US coming in slightly higher than expected – with 373,000 people applying for first time unemployment benefit.
Losses were led by companies that would benefit from a rapid economic comeback from the virus, Chip stocks also fell on concerns about the pace of the global recovery. Micron, Qualcomm, Intel and Applied Materials fell more than 1% and Nvidia dropped 2.3%. Bank were also weaker, as their profitability outlook dimmed with lower rates persisting.
European Stocks (Stoxx 600) fell -1.8% with all sectors in the red, led by retail stocks led by negative sentiment from Asia and the US.
Pacfic Edge Limited (PEB:NZX)
Pacific Edge (PEB) shares were up +2.5%, following the journal of Urology posting a peer-reviewed study which found the use of the Cxbladder products was 4.8 times more efficient than the latest American Urology Association guidelines. Increasing the positive adoption of Pacfici Edge's products added by announcement earlier that the Northland District Health Board commercialising the use of Cxbladder, with haematuria patients now to be referred for the Triage test by their primary care physician (GP).
We continue to remain BUY rated on Pacfic Edge.
Australia & New Zealand Market Movers
The Australian market was higher yesterday (ASX 200 index +0.2%), as a decline in bond yield overnight supported gains.
Technology stocks led the gains on the market, Zip Co jumping +13.7% along with rest of Buy now pay later shares performing strongly Afterpay up +3%.
Major miners were stronger, supported by the price of iron ore rising back above US$220 a tonne, BHP up +1.8%, and Rio only a touch higher up +0.1%. Smaller miners were also higher Lynas up +4.1% and Pilbara minerals climbing +2.7%.
Sydney Airport jumped +2.9% as it was reported that a consortium led by Macquire may make a takeover bid.
Amp closed flat after announcing it would sell its global equities and fixed income investment business to Macquarie which edged higher up +0.5%.
The major banks were weaker, negatively impacted by lower bond yields.
The New Zealand market was flat yesterday (NZX 50 index +0.01%), as investors took a cautious tone to the market.
A2 Milk led the charge again up +2.7%, as it continues to receive attention as a value buy, particularly from Aussie investors.
Property stocks continue to be strong especially Argosy up another +0.9% as it is rumoured to enter into FTSE global real estate index.
3 Things Markets will be Watching this Week
- Key events this week include Fed's June meeting minutes for their inflation view and bond tapering
- In Australia, covid-19 related developments, RBA's meeting on cash rate, building approvals and retail sales data.
- In NZ, Goodman Property and Investore Property are holding AGM's, and Summerset's second quarter sales update.
