TRANSFER OF COVERAGE
Nuplex Industries: All Things Old are Nu Again
New resin products, rising volumes, reduced costs from procurement and restructuring, and improving margins support upside for Nuplex.
Global Stocks Return To Retreat
Markets returned to declines as investors avoided risk worldwide amid concern that central-bank efforts to support growth are losing their potency, while oil fell near US$26 a barrel.
US stocks dragged lower as investors lose confidence
US stocks declined, with the Dow Jones Industrial Average down more than 350 points, amid concern that central-bank efforts to support growth are losing their potency even as Janet Yellen assured the Senate that the Fed would move cautiously in raising rates. She said the Fed was evaluating negative interest rates as a potential policy tool if the US economy faltered. At the time of writing the S&P 500 had sunk -1.8%, whilst the Dow Jones was down -2.0%.
Banks led the early retreat, with Citigroup and Bank of America falling -6.1% and -6.6% respectively. Equities extended losses as Boeing tumbled -10.8% after speculation regulators are probing its accounting related to two of its best-known models of airliners. Energy shares dropped as oil fell near US$26 a barrel, with Chevron down -2.7%. Discovery Communications dropped -3.0%, while Nike slid -2.5%.
European and UK stocks back to losses
The relief rally that swept through Europe’s stock markets on Wednesday came to an abrupt halt, as shares slid for the eighth time in nine days to hit their lowest levels since September 2013. The Stoxx Europe 600 lost -3.7%. Societe Generale tumbled -13.0% after reporting that quarterly profit missed estimates as earnings at the investment bank fell and it set aside provisions for potential legal costs. Siemens slumped -4.2%. Adidas bucked the trend, rising +2.3% after the German sportswear maker raised its sales and earnings outlook for this year. LafargeHolcim fell another -5.4%.
The UK’s FTSE 100 slumped -2.4%, with financial firms and mining stocks leading declines. Barclays and Prudential dropped -7.0% and -7.5% respectively, amid mounting fears over the stability of the European banking system. Aberdeen Asset Management fell -7.4%. Randgold Resources and Fresnillo jumped +7.5% and +5.4%, tracking a rally in gold prices.
Asian stocks lower
Asian stocks fell as markets in Hong Kong and Seoul joined a global selloff in their first day of trading this week. The MSCI Asia Pacific Index slid -1.7%, while the Hang Seng Index slumped -3.9% and the Shanghai Stock Composite Index dipped -0.8%. Energy shares led losses, with CNOOC, dropping -5.3%. China Railway Construstion and Tencent fell -6.7% and -5.6%. Japan’s markets were closed for National Founding Day.
ASX 200 in bear market
The ASX 200 added +1.0%. After a soft start, the big four banks finished higher, CBA +0.1%, NAB +0.7%, Westpac +0.9%, ANZ +1.3%.
Crude falls, gold raises
WTI crude fell -2.5% to US$26.76 while gold rose +4.6% to US$1,252.34
StatsNZ: Food Price Index - Jan. 2016 mth
MHI 1H16 result