ECB Goes Negative | Z Energy & Synlait Tumble

13 September 2019

Global markets ​were higher overnight ​​as shares on Wall Street ​hover ​just ​below​ a​ll-time high​s​, buoyed by positive developments on the US-China trade front and a promise of continued stimulus from the European Central Bank.

The European Central Bank has gone for stimulus as predicted, cutting its key rate to a record low​ (th​e main refinancing rate is now negative at -0.5%)  and will restart bond purchases of €20 billion a month up to shortly before the next rate decision​.​

​This weeks podcast discusses ​housing, an Uber Rant and Cannasouth Deep Dive (CBD)​. To listen CLICK HERE.
 

Stock in Focus: Z Energy (ZEL:NZX / ZEL:ASX)

​​​​​​​​​​​​​​​​​​​​​​​​​​​​Z Energy led the NZ market lower yesterday after cutting its earnings guidance by $60 million, most of which it blamed on "unprecedented" discounting among petrol retailers, coinciding with the Commerce Commission's market study of the sector. 

The company also was hit by lower refining margins. Z Energy trimmed its dividend, something which has been a key positive factor highlighted by investors bullish on the company.  

​We have been cautious on Z Energy for some time, and the operating environment remains difficult with volatile oil margins, retail competition, and the threat of government regulation.

We currently have a ​HOLD​ recommendation on​ ZEL.
Members should look out for a full update on ​ZEL to be released in our weekly report.

The European Central Bank has gone for stimulus as predicted, cutting its key rate to a record low​ (th​e main refinancing rate is now negative at -0.5%) and will restart bond purchases of €20 billion a month up to shortly before the next rate decision​.​

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