Global markets were higher overnight as shares on Wall Street hover just below all-time highs, 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 (the 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.