War Ups Inflation Fears | Sky TV

4 March 2022

Global markets were lower overnight, with US Markets dipping (S&P 500 Index -0.5%) as investors fear the economic impact of the ongoing war – particularly in respect to rising commodity prices.

Wheat, corn and aluminium prices continue to push higher on supply fears although oil is slightly lower overnight after hitting almost $128/barrel at one point on speculation of an imminent Iran nuclear deal. While markets are volatile, the biggest fallout is still being felt in Russian stocks and European companies with links to Russia/Energy. Defensive plays such as health care and utility stocks outperformed overnight, while consumer discretionary and tech led losses.

European Markets slumped (Stoxx 600 index -2.0%) again as tensions in Ukraine escalate, and the Euro hit fresh 18-month lows. After speaking with Putin, French President Macron warned “the worst is still to come” in Ukraine with Russia intending to take “full control” of the country by whatever means necessary
 

Sky TV ( SKT:NZX / SKT:ASX)

Sky TV reported a sound result for the first half of 2022 financial year ending, reporting modest +4.1% growth in revenue signally the worst is possibly over as subscribers grew by +6%. Significant cost saving programme is helping to deliver a sizable profit, guiding a net profit after tax of $40m to $48m for the 2022 financial year.

While things appear to be turning around and in light of their profit guidance Sky TV may appear attractively priced as a value play, but we still prefer to avoid the stock at current levels and remain HOLD rated.
 

NOT A MEMBER? SIGN UP FOR A 15 DAY FREE TRIAL

Australia & New Zealand Market Movers

The Australian market was up yesterday (ASX200 index +0.5%) marking its fifth consecutive day in the green.

It was another mixed bag of session across the board, with Materials and Energy stocks leading the gains again as commodity prices continue to rise on tightening supply issues. 

Points bet was the best performing stock up +18.2% after receiving a broker upgrade 

The New Zealand market was down on Thursday (NZX 50 index, +1%) as global markets took a breather on the Fed providing more certainty over its upcoming rate hikes.

Travels stocks were higher with Tourism holdings up +2.9%, and Auckland International Airport rising +3.1%. Air NZ did not get the same response slipping -1.6% as rising oil prices will negatively impact earnings.  
 

3 Things Markets will be Watching this Week

  1. Geopolitical Risks – Russia/Ukraine.
  2. Eurozone inflation figures and the latest manufacturing data in China.
  3. Locally, the RBA meeting will be a big focus along with Q4 GDP data in Australia.
Global markets were lower overnight, with US Markets dipping (S&P 500 Index -0.5%) as investors fear the economic impact of the ongoing war – particularly in respect to rising commodity prices.

Do You Want Daily Market Insights?

If you’re interested in staying up-to-date with the latest news and analysis on stocks, be sure to sign up to BlackBull Research.

1 Month Free Trial

Access our expert stock market research Free of charge with no obligation

Free 1 Month Free Trial

Unlock this article & access our expert stock market research

ASX, NZX & USD Stock Buy, Hold, Sell recommendations. Model Portfolios. Daily news and more

[pmpro_checkout]