Global markets were higher overnight, as US markets (S&P 500 index +1.5%) continued on a positive trend, up for a 4th day in a row.
Firming commodity prices saw energy stocks lead gains with all sectors up except for utilities. The market will be focused on the nonfarm payrolls (US employment) report due out tonight, with consensus looking for a healthy 265,000 monthly jobs gain and for the unemployment rate to hold steady at an ultra-low 3.6%.
The meme-stock Gamestop rose +15% after their board had announced a 4-to-1 stock split – despite the spit not adding any significant value.
European Markets (Stoxx 600 index +1.9%) closed higher overnight. The upward session was driven by many factors. Commodity-linked stocks surged as oil and metal prices rebounded, bank stocks bounced, and minutes from the European Central Bank’s June meeting showed policymakers debated a larger interest rate hike for July.
Pushpay (PPH.NZX)
Church donation payment processor Pushpay shares were flat yesterday after announcing it had won over the Seattle archdiocese as a new customer a key gain in the catholic church sector. Bringing on the Archdiocese of Seattle will give Pushpay the opportunity to reach 174 parishes and a catholic population of more than 600,000 people. We see this is an incremental positive, illustrating some early traction on its Catholic customer acquisition strategy. We rate Pushpay as a BUY as it represents sound medium-term upside after the current volatility settles, as well as potentially being a quick short-term play if a takeover offer does eventuate.
Australia & New Zealand Market Movers
The Australian market (ASX200 index +0.8%) rose as stabilising commodity prices saw energy and material stocks recover, while it was a mixed day of trading for the rest of the market.
Chalice mining jumped +6.7% after announcing a new nickel-copper—platinum sulfide zone has been interested in initial drilling at Dampier Target.
Tech shares were generally lower, with Zip tumbling -5.2% after being given a sell rating form a major broker, which didn’t bode well with other buy now pay later stocks, such as Sezzle which slumped -15.1%.
The New Zealand market (NZX 50 Index -0.3%) missed out the global recovery, slipping slightly.
Investors look to take profit from large caps which offset gains from smaller stocks, Eroad being a standout recently up another +13% yesterday.
3 Things Markets will be Watching this Week
- Highlights this week include US nonfarm payrolls (employment data), Fed meeting minutes and the latest inflation data in China.
- Locally, the RBA meets with a 50bp lift to the cash rate expected, which would take it to 1.35%.
- Home loans and building approvals in Australia are also due this week along with Goodman Property’s AGM and a Q2 sales update from Summerset