NZ & Aus
Kiwi Property Group shares edged lower after revealing its property revaluation fell -2.4% to $3.1B for 6 months ending 30th September. Its NTA is expected to fall to $1.18, down -4%, we expect one more meaningful valuation downgrade next year, with the stock trading well below its NTA the market is pessimistic – we remain BUY rated due to the ~30% to NTA markets pricing in upcoming weakness. Qantas shares slumped to a 12-month low, as it flagged material increase to investment in customer improvements and the impact of elevated fuel prices. In respect to the former, a total of $230m will be invested in addressing a number of customer pain points. As for the latter, higher fuel prices are expected lead to an additional $200m in costs during the first half.
US
US markets (S&P 500 Index, +0.4%) were up overnight snapping up a 4-day losing streak as stocks struggled this month as the Federal Reserve signaled higher interest rates for longer, sending bond yields higher. The S&P 500 has fallen nearly 4% in September, on pace for its second straight losing month and its worst month since December. The tech index Nasdaq is down 5.4% in September as growth stocks bore the brunt of the sell-off, both heading for its biggest monthly loss since December.
Week Ahead
Tuesday
US Philadelphia Non-Manufacturing Index and New Home Sales
Wednesday
Australian Inflation (CPI) data
Thursday
US and UK Q2 GDP data
Australian Retail Sales and Job Vacancies data
Friday Eurozone Inflation (CPI)
