Global markets were mixed overnight, as US markets (S&P 500 index) ended a choppy session flat. The market index failed to find clear direction, as market pessimism coincided with end-of-quarter portfolio rebalancing.
In terms of sectors, real estate, materials, and financials were lower, while more defensive exposures such as healthcare and consumer staples performed well.
US Federal Chairman Jerome Powell said the US economy is in ‘strong shape’ and well-positioned to handle tighter policy, noting the Fed’s aim is to slow growth to give supply a chance to catch up to demand.
European Markets (Stoxx 600 index -0.7%) closed lower as recession risks weighed on the market with most sectors trading lower, except for Healthcare.
Select Harvest (SHV:ASX)
Almond producer select harvest shares were down -4.9% yesterday after warning its 2023 crop pollination is at risk after the emergence of varroa mite which is dangerous to its honey bees.
So far two mites have been found 65km away apart and linked to the same outbreak causing standstill orders affecting up to 44% of Select harvest orchards. The news highlights unavoidable agricultural risks in the sector, and we are currently HOLD rated on Select Harvest.
Australia & New Zealand Market Movers
The Australian market was down yesterday (ASX200 index -0.9%), snapping up its 4-day winning streak.
Most sectors were lower led by real estate, technology, and communications. Financials managed to buck the trend as banks looked to recover from the heavy June sell-off.
The New Zealand market (NZX 50 Index -0.5%) was down on Wednesday as global market recovery runs out of steam, not helped by weak consumer confidence data.
Tourism Holdings led the market lower -4.7%, followed by Kathmandu -4.4% as consumer facing stocks felt the brunt of the selling.
3 Things Markets will be Watching this Week
- Geopolitical risks remain elevated given the Russia/Ukraine conflict.
- Highlights this week include GDP, ISM manufacturing data out of the US.
- Locally, retail sales in Australia are due along with earnings from Metcash and Collins Foods while AGM’s will be held by Kiwi Property, CSR and Arvida.