Global markets were higher overnight as Wall Street hit record levels after President Donald Trump tweeted that the United States was “very close” to a trade deal with China and on a report that US trade negotiators had offered to cancel a fresh round of tariffs on Chinese goods that were set to be put in place on the weekend.
At the same time, the UK election is underway, with the first exit poll results due shortly.
Stock in Focus: Wellard (WLD:ASX)
Live export company Wellard has struck a deal to sell the world's largest purpose-built livestock vessel, the MV Ocean Shearer, for US$53 million (A$77.05m), in a bid to remedy the company's finances.
Wellard executive chairman John Klepec said the Ocean Shearer was costing the company US$8m annually in principal and interest costs.
"Given our comparable-sized vessel, the Ocean Drover, has completed three times the number of voyages as the Ocean Shearer in 2019, it makes financial sense to release value and reduce debt from an under-utilised asset, adding A$15.8 million to our cash reserves," Mr Klepec said.
We currently have a HOLD rating on WLD.
Australia & New Zealand Market Movers
The Australian market sold off on Thursday (ASX 200 index -0.65%) with banks under pressure as Westpac fronted shareholders at its annual general meeting, while the risks of the impending UK election and upcoming US tariffs worked to depress broad market sentiment. In other stock news, Charter Hall Group rose after it said that its funds will acquire a 49 per cent interest in 225 retail properties leased to BP Australia for $840 million. The property group also announced the $398.9 million sale of Arnott's industrial facility in Sydney's west. Rare earths miner Lynas rallied after a report that it is contention to build a processing facility funded by the US Army.
The New Zealand market continued to trend higher yesterday (NZX 50 index +0.14%) as the government’s efforts to stoke the economy with infrastructure spending continued to overshadow uncertainties around Brexit and the lingering China-US trade talks. Outside the benchmark index, NZME was higher as the publishing company won over coalition government partner NZ First in its bid to side-step competition law with a Kiwishare obligation to let it buy ailing rival, Stuff. Chief executive Michael Boggs told reporters he was sure a deal could be profitable enough to satisfy shareholders.
3 Things Markets Will be Watching this Week
- Tariff news, as planned tariffs by the US on Chinese imports kick in on Dec 15.
- The US Federal Reserve makes its last interest rate decision for the year Thursday morning (AU/NZ time).
- The UK election will be held on the 12th of December.
Have a Great Day,