President Xi Lifts Markets | Ryman Healthcare

11 April 2018

Global markets powered higher overnight after China's President Xi Jinping opted for a positive, constructive message about trade in a key speech. President Donald Trump tweeted that he was "very thankful" of Xi's words, "We'll make great progress together!" Trump also said in the tweet. The easing of tensions between the two nations sparked a rally across assets.
 
In other news, the price of oil jumped 3% overnight after Bloomberg reported that Saudi Arabian officials have been signalling their intent to see oil reach the $US80 a barrel level. Investors also look ahead to US corporate earnings season which kicks off later this week.  

Stock in Focus: Ryman Healthcare (RYM:NZ)
Shares in retirement village operator Ryman Healthcare (RYM) were up yesterday and the stock is trading near its highs. We went on a tour of the Bert Sutcliffe Retirement Village in Birkenhead on the North Shore in Auckland the other day, and we will be releasing a report this afternoon on some of our takeaways.

We were impressed by the demonstration of the myRyman application, an inhouse CRM software that helps manage the operations of the village. RYM also remain confident in their expansion into Melbourne, Australia, which has so far been conservative. A risk that was highlighted to us is that with a new government, any changes to immigration policy could potentially have negative implications for the aged care sector (foreign workers make up around one-third of the workforce across the aged care sector).

We currently have a HOLD recommendation on RYM.
Members should look out for a full update on RYM to be released in today’s weekly report.

Australia & New Zealand Market Movers
The Australian share market was higher yesterday (ASX 200 index +0.83%) as it experienced its best session in over a month. Westpac was the best performer of the big four banks, while the big miners finished the day strongly after reversing earlier losses. Mining majors BHP and Rio Tinto were higher and experienced a string jump in overnight US trade. Xero was among the best performers after a broker initiated coverage on the company with an "outperform" recommendation.
 
The New Zealand market was in positive territory on Tuesday (NZX 50 index +0.18%) as equity investors took heart from comments by Chinese President Xi Jinping that he favoured an open economy and lower tariffs. Pushpay Holdings, Ryman Healthcare, Air New Zealand, Trade Me and Australia & New Zealand Banking Group gained. In other news, Fonterra has walked away empty handed from talks to buy one of Argentina's leading dairy producers, according to reports from the South American country.

 
3 Things Markets Will be Watching this Week
1.                 Global politics remain in focus with tensions rising between the US and China as they impose trade tariffs on each other.
2.                 Earnings season begins in the US again later this week, with the major banks being first to announce quarterly profits.  
3.                 Important US inflation (CPI) data is released on Thursday.

 

Have a Great Day,

Team

Global markets powered higher overnight after China's President Xi Jinping opted for a positive, constructive message about trade in a key speech. President Donald Trump tweeted that he was "very thankful" of Xi's words, "We'll make great progress togethe

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