Find below a link to our “Guide to Markets” summary for Q3 earnings, focusing on US equities. It’s a “one stop” sheet with our recommendations for the US equities we currently cover, alongside our commentary on each company and the quarter overall in markets.
BlackBull-Research-guide-to-markets-Q3.pdf (blackbull.com)
As Australian and New Zealand companies are in the middle of their earnings season, expect another “Guide to Markets” for NZX/ASX companies, which we will send out at the end of reporting season for Australasia.
New Zealand Market Movers
The New Zealand market (NZX 50 Index, +2.0%) rallied on Friday on the back of the softer-than-expected inflation data in the US that advanced indices globally.
NZ King Salmon (+17.8%) led all gainers after announcing it had received approval to develop its ‘Blue Endeavour’ open-ocean farm. Ebos Group (+8.0%) rallied after being added to the MSCI (Morgan Stanley Capital International) small cap index. Other gainers on the day included Pacific Edge (+6.8%), My Food Bag (+5.2%), and Eroad (+5.0%).
Australia Market Movers
The Australian market (ASX 200 Index, +2.8%) rallied to a five-month high on Friday following the US inflation news as well as China confirming it will relax some of its Covid rules. Regarding the latter, while China has not entirely scrapped its zero-Covid policy, it no longer requires local authorities to track secondary close contacts, and quarantine time for international traveller has been reduced from seven days to five. Materials rose 3.7% in response, however Information Technology (+5.0%) led sectorial as Australian 10-year bond yields hit a 2-month low just above 3.600%. Zip (+18.4%), Megaport (+13.6%), and Block (+11.5%) registered outsized gains on the day.
Utilities (-0.5%) was the only sector in the red on Friday.
Europe Market Movers
European markets (Stoxx 600 Index, +0.1%) closed flat on Friday, exhausted after its +2.8% rally on Thursday. Resources (+2.6%) led gains while Healthcare balanced (-2.4%) out the market leading losses.
US Market Movers
US markets (S&P 500 Index +0.9%) added modest gains on Friday following its biggest one-day gain in two years on Thursday. Sector gains were mixed, with 6 out of the 11 major sectors in positive territory. Led by Energy (+3.1%) and Communication Services (+2.5%).
Amazon (+4.3%) continued its advance on Friday, beating the more modest gains made by other the tech heavyweights Apple (+1.9%) and Microsoft (1.7%).
After the softer-than-expected US inflation, the market will be watching for further signs suggesting that inflationary pressures are starting to let up and economic activity is slowing. Clues will be looked for in the US Producer Price Index for October when it is released on Wednesday (2.30am UTC+13) and US Retail Sales for October the following morning.
Several big retailers report earnings this week, including Home Depot, Walmart, TJ Max, and Target.
What Markets will be Watching this Week (UTC +13)
Monday
Elders earnings
Tuesday
AU RBA Meeting Minutes
GB Unemployment Rate SEP
Infratil earnings
Wednesday
US Producer Price Index MoM OCT
GB Inflation Rate YoY OCT
Walmart earnings
Home Depot earnings
Thursday
US Retail Sales MoM OCT
AU Unemployment Rate OCT
Nvidia earnings
TJ Max earnings
Target earnings
Friday
Alibaba earnings
Applied Materials earnings
Ryman earnings
Saturday
JD.com earnings