New Zealand Market Movers
The New Zealand market (NZX 50 Index, -0.9%) was dragged down by losses in heavyweights Fisher & Paykel Healthcare (-3.5%), Infratil (-2.9%), and Mainfreight (-2.7%).
. A2 Milk (+4.2%) advanced after announcing that it had secured approval from the US’s Food and Drug Administration (FDA) to sell its milk formula in the country. A2 Milk’s production partner Synlait Milk (+2.3%) also experienced a bump in its share price.
Briscoe Group (+1.8%) rose after reporting its third-quarter sales for the 13 weeks to 30 October 2022. Investors were encouraged by the group’s sales growth across all its major categories, with total sales 25% above 2019 third-quarter sales. the company also noted that they remain optimistic that they will generate a full year net profit after tax (NPAT) above last year’s record $87.91 million.
Australia Market Movers
The Australian market (ASX 200 Index, -1.8%) fell on Thursday, with 10 of the markets 11 sectors in the red, with Materials (-3.0%) suffering the worst losses.
Banking stocks shed some of the gains they had made since Tuesday, with Westpac (-2.4%), Bank of Queensland Limited (-2.3%), National Australia Bank (-1.8%), Commonwealth Bank (-1.4%), and ANZ (-1.2%) all closing lower.
Woolworths share fell –3.5% after delivering a soft quarterly update stating that average food prices surged +7.3% in the September quarter due to double-digit inflation in fresh fruit and vegetables, which will eat into margins. The news dragging Coles (-1%) and Metcash (-1.5%) lower.
Europe Market Movers
European markets (Stoxx 600 Index, -1.0%) closed lower after the Bank of England enacted its largest rate hike in 33 years (75-basis-points) and warned that the UK will likely face a recessionary climate until the third quarter of 2024. UK unemployment is also expected to double to 6.5%.
US Market Movers
US markets (S&P 500 Index -1.1%) built upon Wednesday’s losses after the US Federal Reserve’s 75-basis-points rate hike. 2-year Treasury yields (+2.9%) spiked to 4.7%, its highest level since July 2007, putting pressure on equities.
Major market movers to the upside included Etsy (+14.3%), Under Armour (+12.1%), and Robinhood (+8.2%), after reporting quarterly results above expectations.
Starbucks (+0.1%), reporting after the bell, have beat its quarterly earnings expectations. Net sales increased 3.3% to $8.41 billion (vs expected 8.31 billion). Starbucks is trading up 1.5% in afterhours trading.
Investors now turn to October’s Non-Farm Payrolls and unemployment data, both due 1:30 am on Saturday.
Stock In Focus: A2 Milk (ATM.NZX)
A2 Milk (+4.2%) advanced after announcing that it had secured approval from the US’s Food and Drug Administration (FDA) to sell its milk formula in the country, through to 6 January 2023. A2 Milk’s production partner Synlait Milk (+2.3%) also experienced a bump in its share price.
We wouldn’t view this as a major win, given the limited nature of the approval, but has excited markets to help expand their presence in the US, which could help offset weakness in China.
We remain HOLD rated on A2 Milk at current levels.
What Markets will be Watching this Week (UTC +13)
Monday
EA Inflation Rate Year-on-Year Flash OCT
Tuesday
AU RBA Interest Rate Decision
Wednesday
US Manufacturing PMI OCT
US JOLTs Job Openings SEP
Pfizer earnings
AMD earnings
Airbnb earnings
Thursday
US ADP Employment Change OCT
US Fed Interest Rate Decision
Estee Lauder earnings
Booking Holdings earnings
Friday
GB BoE Interest Rate Decision
Starbucks earnings
Saturday
US Non-Farm Payrolls OCT
Berkshire Hathaway earnings