US markets (S&P 500 Index -1.1%) fell as Treasury yields rose ahead of the US Federal Reserve rate decision, due on Thursday (NZDT).
Markets are now perhaps content with a third consecutive 75-basis-points hike from the Fed. Thus, markets are preparing for projections that the central bank will deliver this week concerning its future rate rises, inflation, and economic growth.
Meanwhile, Ford (-12.3%) suffered its worst day since 2011, after warning the market that its supplier costs for the current quarter will be $1 billion more than previously reported. Beyond Meat (-6.0%) also closed lower on the day after the company announced that its Operating Chief Doug Ramsey was suspended after being charged with terroristic threatening and third-degree battery for biting a man’s nose at a college football game.
European markets (Stoxx 600 Index, -1.1%) closed lower as the 2-day the Federal Open Markets Committee (FOMC) meeting gets underway.
New Zealand King Salmon (NZK: NZX)
NZ King Salmon shares have lost -65.7% of their value this year, as it attempts to change its operating model to be a much smaller and efficient salmon harvester to combat rising water temperatures and fish mortality rates.
Regardless of the company’s suppressed stock price, we prefer to avoid NZK at current levels even if next week’s earnings report suggests that they are on their way to fulfilling their projected 2024-2025 rebound.
Australian & New Zealand Market Movers
The Australian market (ASX 200 Index, +1.3%) gained on a materials (+2.7%) sector rally. New Hope (+8.8%) led the pack, followed by Mineral Resources (+5.3%), Corondo Global Resources (+5.3%), and Lynas Rare Earths (+4.9%).
New Hope closed at a record high of $5.94 per share on Tuesday after the coal miner reported a 12x climb in profit to $983 million for the year to July, a record for the company, thanks to abnormally high coal prices.
The New Zealand market (NZX 50 Index, +0.3%) rose slightly on Tuesday in one of the lightest trading volume days of the year.
KMD Brands (+3.0%) ended the day in the green after reporting +6.2% sales growth in its in FY2022 report, topping its top end guidance from July ($979.8 million vs $965 million expected).
What Markets will be Watching this Week (UTC –4)
Monday
Japan Inflation Rate YoY (AUG)
Australia RBA Meeting Minutes
Tuesday
Canada Inflation Rate YoY (AUG)
Wednesday
US Fed Interest Rate Decision
BoJ Interest Rate Decision
Thursday
BoE Interest Rate Decision
Friday
US Fed Chair Powell Speech