News

The big news on the NZX was the listing of RUA, the first IPO since Napier Port last year. 

US fiscal stimulus headlines dominate the news board, with no agreement for a relief package as clear differences between both sides still remain.

There was little in terms of fresh news, as US stocks turned lower as investors assessed the latest progress toward a government spending bill.

Global markets were mixed to close the week (S&P 500 Index +0.01%) as reporting season started to ramp up in some of the major markets, while US stimulus talks and Brexit discussions between the UK and EU continued to show little sign of coming to an agre

Global markets took a breather overnight (S&P 500 Index -0.6%) with hopes of stimulus before the election fading & as US banks were weaker on the back of initial 3rd quarter results.

Risk appetite has weakened following fresh restrictions across London and France to bring the spread of COVID19 under control.

The market remains unperturbed by the lack of government fiscal support, seemingly taking the view that a clean sweep by the Democrats will see a large fiscal stimulus early next year anyway, which will more than offset any concern that higher taxes might

It is set to be a busy week ahead with the focus on quarterly reporting season in the US and a number of AGM’s in Australia/NZ.

Locally, the RBNZ continues to reiterate that it is better to do too much than too little, thus locking in negative interest rates for next year – underpinning positive share market investor sentiment which saw the NZX hit a new all-time high.