US markets (S&P 500 Index 0.0%) were closed on Monday in observance of Labor Day. However, US Futures (S&P 500 Index Futures +0.3%) are currently trading slightly higher in anticipation of Tuesday’s opening.
European stocks weaker as energy crisis continues to dominate headlines (Stoxx 600 Index -0.6%) as euro gas futures jumped +15% while the Euro fell through 0.99 versus the US dollar for first time in 20 years. Russia’s Gazprom announced that they would be indefinitely halting gas flows to Europe via the Nord Stream 1. Putin’s spokesperson said there would be no resumption in gas supply until sanctions are lifted. The loss that was incurred in the Stoxx 600 could have been worse if not for the gains made in energy sector stocks (STOXX 600 Energy +2.2%).
SKY Network Television (SKT:NZX)
Reflecting the wider NZX, SKY Network Television remained flat on Monday, climbing an immaterial cent to $2.51 per share.
However, excitability has occurred in SKY shares since the company released its Full Year 2022 results on August 25. SKT has been punished with a –4.2% dip in its price over the past two weeks. However, greater losses have been mitigated by the 2.0% bounce in its share price over the past 5 days of trading.
This dip, combined with some positive qualities found in SKY’s result report may have been the catalyst for this bounce. SKY is planning to spend $70 million buying back some of its shares after reporting revenue growth for the first time in six years.
We are Hold rated on Sky TV.
Australia & New Zealand Market Movers
The Australian market (ASX 200 Index, +0.3%) rose on Monday, buoyed by Energy stocks, which rallied for the same reason as their counterparts in Europe, with coal stocks performing the best. The ASX Energy sector closed +4.0% higher for the day, after additional buoyancy was added by the prospect that OPEC+ will be announcing cuts in oil production shortly.
As a net exporter of energy, developments in the global energy market might be expected to have a greater impact on the ASX this week than today’s interest rate decision from the Reserve Bank of Australia.
The New Zealand market (NZX 50 Index, -0.1%) was flat yesterday, falling less than 0.1%. The lack of market updates and pertinent economic data might be the cause of the thin trading volumes in the New Zealand market.
The highlight was Infratil up +3.4% reaching fresh all-time highs, with no news as it commenced its share buyback program last week. The Gentailers were also up strongly as investors flocked to safety.
What Markets will be Watching this Week
Monday
Australian PMI and retail sales data
Tuesday
Reserve Bank of Australia cash rate decision.
Wednesday
Eurozone employment and second quarter GDP data. Australia’s second quarter GDP data.
Thursday
Bank of Canada interest rate decision
Friday
European Central Bank interest rate decision and China (consumer) CPI and (producer) PPI inflation data.